The influence of circular economy implementation on competitiveness in manufacturing companies

Abstract

As companies in the manufacturing sector are starting to incorporate circular economy targets in their strategies, they need to understand what capabilities and circular engineering solutions they should develop and implement, including their likely impact on the company performance. Based on survey data from manufacturing companies operating in Germany (N=111) collected in December 2021/January 2022, we pre-sent how the perceived level of circular economy, via the implementation of circularity into operations, products and services, influences the company’s perceived competitiveness on the level of product/service innovativeness. The results indicate that employees in the companies perceive that the level of circular economy implementation (i.e., implementing circularity into operations, products and services) has a sig-nificant influence on the perceived product/service innova-tiveness and perceived competitiveness of companies that have already incorporated circular economy into their strategy. Furthermore, the data indicate that fostering a circular econ-omy-oriented business culture alone is no longer enough for ensuring competitiveness.