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Leveraging Circular Business Models in Textiles - A Socio-Technical Pathway for German SMEs

Coisne, Gregory Etienne LU (2025) In IIIEE Master Thesis IMEM02 20251
The International Institute for Industrial Environmental Economics
Abstract (Swedish)
The textile industry’s linear business paradigm fuels excessive resource extraction and generate vast amounts of waste. Despite the EU Circular Economy Action Plan and growing industry awareness of these environmental concerns, many firms struggle to implement transformative Circular Business Models (CBMs) that provide a sustainable countermodel. Underlying socio-technical dynamics further amplify the low uptake, which manifests in fragmented value chains and limited organisational capacities. Technologies are portrayed as a promising enabler to overcome these constraints. However, a particular hurdle for small- and medium-sized enterprises (SMEs) in Germany is that they are often overlooked in the discourse on the circular-digital... (More)
The textile industry’s linear business paradigm fuels excessive resource extraction and generate vast amounts of waste. Despite the EU Circular Economy Action Plan and growing industry awareness of these environmental concerns, many firms struggle to implement transformative Circular Business Models (CBMs) that provide a sustainable countermodel. Underlying socio-technical dynamics further amplify the low uptake, which manifests in fragmented value chains and limited organisational capacities. Technologies are portrayed as a promising enabler to overcome these constraints. However, a particular hurdle for small- and medium-sized enterprises (SMEs) in Germany is that they are often overlooked in the discourse on the circular-digital intersection, despite their significant contribution to the national economy. For these reasons, the thesis aims to explore the co-evolution between technology and socio-technical dynamics for scaling CBM in textile SMEs. The study utilises a qualitative and exploratory approach that accounts for the nuanced entanglement. It addresses three interconnected research questions within the German landscape by (1) investigating circular activities and digital-based CBM, (2) analysing how socio-technical factors influence their adoption, and (3) identifying practical and systemic conditions that enhance CBM scalability. Empirical data was collected through fifteen semi-structured interviews and complementary document analysis of Corporate Social Responsibility (CSR) reports. These insights were then thematically synthesised using Mayring’s (2014) qualitative analysis and structured along Bocken et al.’s (2016) three-level clusters on narrowing, slowing, and closing resource loops. While narrowing strategies are designed to optimise material use, these efforts face high costs and legacy system lock-ins. Slowing methods to extend lifecycles remain experimental, as they are constrained by consumer uptake and financial fragility. Closing loops for material reintegration remains fragmented, as deficiencies hinder it in trust and regulatory misalignments. Key findings reveal that existing CBM remain superficial and vary in levels of technological integration. As a result, most SMEs are capitalising on low-risk measures that do not reach deeper transformation. The insights call to business owners to prioritise pragmatic solutions, policymakers to develop tailored regulations and intermediary organisations to foster partnerships. (Less)
Please use this url to cite or link to this publication:
author
Coisne, Gregory Etienne LU
supervisor
organization
course
IMEM02 20251
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Circular Business Models, Textile and Clothing Industry, Small- and medium-sized enterprises, Socio-Technical Systems, Industry 4.0
publication/series
IIIEE Master Thesis
report number
2025:30
ISSN
1401-9191
language
English
id
9209830
date added to LUP
2025-08-19 09:25:45
date last changed
2025-08-19 09:25:45
@misc{9209830,
  abstract     = {{The textile industry’s linear business paradigm fuels excessive resource extraction and generate vast amounts of waste. Despite the EU Circular Economy Action Plan and growing industry awareness of these environmental concerns, many firms struggle to implement transformative Circular Business Models (CBMs) that provide a sustainable countermodel. Underlying socio-technical dynamics further amplify the low uptake, which manifests in fragmented value chains and limited organisational capacities. Technologies are portrayed as a promising enabler to overcome these constraints. However, a particular hurdle for small- and medium-sized enterprises (SMEs) in Germany is that they are often overlooked in the discourse on the circular-digital intersection, despite their significant contribution to the national economy. For these reasons, the thesis aims to explore the co-evolution between technology and socio-technical dynamics for scaling CBM in textile SMEs. The study utilises a qualitative and exploratory approach that accounts for the nuanced entanglement. It addresses three interconnected research questions within the German landscape by (1) investigating circular activities and digital-based CBM, (2) analysing how socio-technical factors influence their adoption, and (3) identifying practical and systemic conditions that enhance CBM scalability. Empirical data was collected through fifteen semi-structured interviews and complementary document analysis of Corporate Social Responsibility (CSR) reports. These insights were then thematically synthesised using Mayring’s (2014) qualitative analysis and structured along Bocken et al.’s (2016) three-level clusters on narrowing, slowing, and closing resource loops. While narrowing strategies are designed to optimise material use, these efforts face high costs and legacy system lock-ins. Slowing methods to extend lifecycles remain experimental, as they are constrained by consumer uptake and financial fragility. Closing loops for material reintegration remains fragmented, as deficiencies hinder it in trust and regulatory misalignments. Key findings reveal that existing CBM remain superficial and vary in levels of technological integration. As a result, most SMEs are capitalising on low-risk measures that do not reach deeper transformation. The insights call to business owners to prioritise pragmatic solutions, policymakers to develop tailored regulations and intermediary organisations to foster partnerships.}},
  author       = {{Coisne, Gregory Etienne}},
  issn         = {{1401-9191}},
  language     = {{eng}},
  note         = {{Student Paper}},
  series       = {{IIIEE Master Thesis}},
  title        = {{Leveraging Circular Business Models in Textiles - A Socio-Technical Pathway for German SMEs}},
  year         = {{2025}},
}