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Balancing the Loop: Navigating Strategic Trade-Offs in Circular Economy Transitions

Diedrichs, Cian LU and Flick, Moritz Janes LU (2025) BUSN09 20251
Department of Business Administration
Abstract
The transition to a circular economy is increasingly recognized as a strategic pathway toward
sustainability and resilience. However, implementation remains complex due to geopolitical
uncertainty and conflicting institutional logics. This thesis explores how European companies
that supply sustainable packaging solutions to the hotels, restaurants, and catering sector
navigate the tensions between long-term circular ambitions, regulatory uncertainty, and short-
term economic pressures. Drawing on institutional theory, the study aims to investigate how
coercive, normative, and mimetic forces and competing institutional logics shape strategic
responses regarding circular economy ambitions under uncertainty. This allows for the first
... (More)
The transition to a circular economy is increasingly recognized as a strategic pathway toward
sustainability and resilience. However, implementation remains complex due to geopolitical
uncertainty and conflicting institutional logics. This thesis explores how European companies
that supply sustainable packaging solutions to the hotels, restaurants, and catering sector
navigate the tensions between long-term circular ambitions, regulatory uncertainty, and short-
term economic pressures. Drawing on institutional theory, the study aims to investigate how
coercive, normative, and mimetic forces and competing institutional logics shape strategic
responses regarding circular economy ambitions under uncertainty. This allows for the first
conceptual insights in an underexplored field in academia.
A qualitative research design was employed and comprised eight semi-structured interviews
with key stakeholders such as companies, consultants, industry, and policy experts. The
thematic analysis revealed that strategic decisions are often driven by market logic with the
pursuit of profitability in the long-term with constant rebalancing of the dimension of the Triple
Bottom Line. Regulatory pressures play a dual role; while they can drive innovation and
demand, unharmonized and uncertainty can hinder implementation. Furthermore, companies
implement hybrid models, collaborations, and a diverse product range to target different
customers. In addition, the circular economy can act as a tool to build circular resilience;
however, the institutional environment needs to be more aligned.
The findings contribute to the circular economy and institutional theory literature by providing
a deeper insight into interconnected tensions. Specifically, they highlight how companies
adaptively navigate institutional complexity by developing hybrid strategies, collaborations
and diverse product portfolios that reconcile conflicting demands. This study offers conceptual
insights into an area that has been underexplored by framing circular efforts within a context
of geopolitical uncertainty. Practically, it emphasizes the need for policy harmonization,
collaboration, and strategic flexibility to support sustainable transitions in uncertain
environments. (Less)
Please use this url to cite or link to this publication:
author
Diedrichs, Cian LU and Flick, Moritz Janes LU
supervisor
organization
course
BUSN09 20251
year
type
H1 - Master's Degree (One Year)
subject
keywords
circular economy, HoReCa sector, institutional logic, strategic trade-offs
language
English
id
9193520
date added to LUP
2025-06-19 13:38:35
date last changed
2025-06-19 13:38:35
@misc{9193520,
  abstract     = {{The transition to a circular economy is increasingly recognized as a strategic pathway toward
sustainability and resilience. However, implementation remains complex due to geopolitical
uncertainty and conflicting institutional logics. This thesis explores how European companies
that supply sustainable packaging solutions to the hotels, restaurants, and catering sector
navigate the tensions between long-term circular ambitions, regulatory uncertainty, and short-
term economic pressures. Drawing on institutional theory, the study aims to investigate how
coercive, normative, and mimetic forces and competing institutional logics shape strategic
responses regarding circular economy ambitions under uncertainty. This allows for the first
conceptual insights in an underexplored field in academia.
A qualitative research design was employed and comprised eight semi-structured interviews
with key stakeholders such as companies, consultants, industry, and policy experts. The
thematic analysis revealed that strategic decisions are often driven by market logic with the
pursuit of profitability in the long-term with constant rebalancing of the dimension of the Triple
Bottom Line. Regulatory pressures play a dual role; while they can drive innovation and
demand, unharmonized and uncertainty can hinder implementation. Furthermore, companies
implement hybrid models, collaborations, and a diverse product range to target different
customers. In addition, the circular economy can act as a tool to build circular resilience;
however, the institutional environment needs to be more aligned.
The findings contribute to the circular economy and institutional theory literature by providing
a deeper insight into interconnected tensions. Specifically, they highlight how companies
adaptively navigate institutional complexity by developing hybrid strategies, collaborations
and diverse product portfolios that reconcile conflicting demands. This study offers conceptual
insights into an area that has been underexplored by framing circular efforts within a context
of geopolitical uncertainty. Practically, it emphasizes the need for policy harmonization,
collaboration, and strategic flexibility to support sustainable transitions in uncertain
environments.}},
  author       = {{Diedrichs, Cian and Flick, Moritz Janes}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Balancing the Loop: Navigating Strategic Trade-Offs in Circular Economy Transitions}},
  year         = {{2025}},
}