Abstract
This paper examines the application of circular economy (CE) solutions in the Italian construction sector, particularly in small and medium-sized enterprises (SMEs). Specific attention is given to identifying barriers that influence the development of organizational learning (OL) processes related to circular business model (CBM) implementation. Using a qualitative method informed by grounded theory, top managers’ perceptions in Italian construction SMEs were investigated using a focus group methodology. The data analysis followed a rigorous method for iterative coding and interpretation relying on the theoretical insights found in OL and CE literature. The study highlights CBM-oriented OL barriers in the external environment, the supply chain context, and individual organizations. In particular, the study identifies culture as a critical multilevel barrier embedded in the other three dimensions. The paper offers several theoretical, managerial, and policy implications, answering a call for CE-related studies in industrial contexts. It furthermore underlines the relevance of OL processes as an essential preliminary step for CBM implementation.
References
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Akintoye, A., & Main, J. (2007). Collaborative relationships in construction: The UK contractors’ perception. Engineering, Construction and Architectural Management, 14(6), 597–617. https://doi.org/10.1108/09699980710829049
ANCE - Associazione Nazionale Costruttori Edili. (2020). http://www.ance.it/
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Banca d’Italia (2019), Indagine sulle imprese industriali e dei servizi 2019, Roma.
Bapuji, H., & Crossan, M. (2004). From Questions to Answers: Reviewing Organizational Learning Research. Management Learning, 35(4), 397–417. https://doi.org/10.1177/1350507604048270
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Bocken, N. M. P., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes. Journal of Cleaner Production, 65, 42–56. https://doi.org/10.1016/j.jclepro.2013.11.039
Bryde, D., Broquetas, M., & Volm, J. M. (2013). The project benefits of Building Information Modelling (BIM). International Journal of Project Management, 31(7), 971–980. https://doi.org/10.1016/j.ijproman.2012.12.001
BSI (2017). BS 8001:2017. Framework for Implementing the Principles of the Circular Economy in Organizations – Guide. The British Standards Institution, London.
Cerchione, R., & Esposito, E. (2017). Using knowledge management systems: A taxonomy of SME strategies. International Journal of Information Management, 37(1, Part B), 1551–1562. https://doi.org/10.1016/j.ijinfomgt.2016.10.007
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Cortese, C. G. (2005). Learning through Teaching. Management Learning, 36(1), 87–115. https://doi.org/10.1177/1350507605049905
Council Directive 2004/18/EC on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts (Official Journal of the European Union). (2004). L. 134, p.114-240.
Della Torre, E., & Solari, L. (2011). High performance work systems, technological innovations and firm performance in SME: evidences from Italy. International Journal of Entrepreneurial Venturing, 3(4), 375-391. https://doi.org/10.1504/IJEV.2011.043384
Dodgson, M., Gann, D. M., & Phillips, N. (2013). Organizational Learning and the Technology of Foolishness: The Case of Virtual Worlds at IBM. Organization Science, 24(5), 1358–1376. https://doi.org/10.1287/orsc.1120.0807
Durst, S., & Runar Edvardsson, I. (2012). Knowledge management in SMEs: A literature review. Journal of Knowledge Management, 16(6), 879–903. https://doi.org/10.1108/13673271211276173
Egan, J. (1998). Rethinking Construction. HMSO.
EU Commission (2019). Annual report on European SMEs 2018/2019.
European Commission (2016). Green Action Plan for SMEs.
Fiol, M., & Lyles, M. A. (1985). Organizational Learning. Academy of Management Review, 10(4), 803–813. https://doi.org/10.5465/amr.1985.4279103
Freeman, T. (2006). Best practice in focus group research: making sense of different views. Journal of advanced nursing, 56(5), 491-497. https://doi.org/10.5465/amr.1985.4279103
Groak, S. (1994). Is construction an industry? Construction Management and Economics, 12(4), 287–293. https://doi.org/10.1080/01446199400000038
GU D. Lgs 19 aprile 2017 n. 56 (Gazzetta Ufficiale)
Hutchinson, V., & Quintas, P. (2008). Do SMEs do Knowledge Management?: Or Simply Manage what they Know? International Small Business Journal, 26(2), 131–154. https://doi.org/10.1177/0266242607086571
ISTAT (2019), Censimento permanente delle imprese 2019, Roma
Kane, G. C., & Alavi, M. (2007). Information Technology and Organizational Learning: An Investigation of Exploration and Exploitation Processes. Organization Science, 18(5), 796–812. JSTOR. https://doi.org/10.1287/orsc.1070.0286
Kirchherr, J., Reike, D., & Hekkert, M. (2017). Conceptualizing the circular economy: An analysis of 114 definitions. Resources, Conservation and Recycling, 127, 221–232. https://doi.org/10.1016/j.resconrec.2017.09.005
Langley, A. (1999). Strategies for Theorizing from Process Data. Academy of Management Review, 24(4), 691–710. https://doi.org/10.5465/amr.1999.2553248
Lewandowski, M. (2016). Designing the Business Models for Circular Economy—Towards the Conceptual Framework. Sustainability, 8(1), 43. https://doi.org/10.3390/su8010043
Liebowitz, & Wilcox. (1997). Knowledge Management and its Integrative Elements. CRC Press. https://www.crcpress.com/Knowledge-Management-and-its-Integrative-Elements/Liebowitz-Wilcox/p/book/9780849331169
McLaughlin, S., Paton, R. A., & Macbeth, D. K. (2008). Barrier impact on organizational learning within complex organizations. Journal of Knowledge Management, 12(2), 107–123. https://doi.org/10.1108/13673270810859550
Morgan D.L. (1997) Focus Groups as Qualitative Research (Qualitative Research Methods Series, Vol. 16), Thousand Oaks, CA: Sage.
Nembhard, I. M., & Tucker, A. L. (2010). Deliberate Learning to Improve Performance in Dynamic Service Settings: Evidence from Hospital Intensive Care Units. Organization Science, 22(4), 907–922. https://doi.org/10.1287/orsc.1100.0570
Nonaka, I. (1994). A Dynamic Theory of Organizational Knowledge Creation. Organization Science, 5(1), 14–37. https://doi.org/10.1287/orsc.5.1.14
NVIVO (2020) Qualitative Data Analysis Software.
Pauliuk, S. (2018). Critical appraisal of the circular economy standard BS 8001:2017 and a dashboard of quantitative system indicators for its implementation in organizations. Resources, Conservation and Recycling, 129, 81–92. https://doi.org/10.1016/j.resconrec.2017.10.019
Pieroni, M. P. P., McAloone, T. C., & Pigosso, D. C. A. (2019). Business model innovation for circular economy and sustainability: A review of approaches. Journal of Cleaner Production, 215, 198–216. https://doi.org/10.1016/j.jclepro.2019.01.036
Plumwood, V. (2005). Environmental Culture: The Ecological Crisis of Reason. Routledge.
Pomponi, F., & Moncaster, A. (2019). Briefing: BS 8001 and the built environment: a review and critique. Proceedings of the Institution of Civil Engineers - Engineering Sustainability, 172(3), 111–114. https://doi.org/10.1680/jensu.17.00067
Pomponi, F., & Moncaster, A. (2017). Circular economy for the built environment: A research framework. Journal of Cleaner Production, 143, 710–718. https://doi.org/10.1016/j.jclepro.2016.12.055
Rizos, V., Behrens, A., Van der Gaast, W., Hofman, E., Ioannou, A., Kafyeke, T., Flamos, A., Rinaldi, R., Papadelis, S., Hirschnitz-Garbers, M., & Topi, C. (2016). Implementation of Circular Economy Business Models by Small and Medium-Sized Enterprises (SMEs): Barriers and Enablers. Sustainability, 8(11), 1212. https://doi.org/10.3390/su8111212
Smith, D., & Elliott, D. (2007). Exploring the Barriers to Learning from Crisis: Organizational Learning and Crisis. Management Learning, 38(5), 519–538. https://doi.org/10.1177/1350507607083205
Steyaert C. & Bouwen, R. (2004), Group Methods of Organizational Analysis. In Cassel, Catherine(ed.): Essential Guide to Qualitative Methods in Organizational Research. London: Sage, 140-153.
Styhre, A., Josephson, P.-E., & Knauseder, I. (2006). Organization Learning in Non-writing Communities: The Case of Construction Workers. Management Learning, 37(1), 83–100. https://doi.org/10.1177/1350507606060983
Suddaby, R. (2006). From the Editors: What Grounded Theory is Not. Academy of Management Journal, 49(4), 633–642. https://doi.org/10.5465/amj.2006.22083020
Sweis, G., Sweis, R., Abu Hammad, A., & Shboul, A. (2008). Delays in construction projects: The case of Jordan. International Journal of Project Management, 26(6), 665–674. https://doi.org/10.1016/j.ijproman.2007.09.009
Szulanski, G. (1996). Exploring internal stickiness: Impediments to the transfer of best practice within the firm. Strategic Management Journal, 17(S2), 27–43. https://doi.org/10.1002/smj.4250171105
Tura, N., Hanski, J., Ahola, T., Ståhle, M., Piiparinen, S., & Valkokari, P. (2019). Unlocking circular business: A framework of barriers and drivers. Journal of Cleaner Production, 212, 90–98. https://doi.org/10.1016/j.jclepro.2018.11.202
UNI - Ente Italiano di Normazione. (2020). https://www.uni.com/
Urbinati, A., Chiaroni, D., & Chiesa, V. (2017). Towards a new taxonomy of circular economy business models. Journal of Cleaner Production, 168, 487–498. https://doi.org/10.1016/j.jclepro.2017.09.047
Yin, R. K. (2017). Case Study Research and Applications: Design and Methods. SAGE Publications.
Agostini, L., Caviggioli, F., Filippini, R., & Nosella, A. (2015). Does patenting influence SME sales performance? A quantity and quality analysis of patents in Northern Italy. European Journal of Innovation Management. https://doi.org/10.1108/EJIM-07-2013-0071
Akintoye, A., & Main, J. (2007). Collaborative relationships in construction: The UK contractors’ perception. Engineering, Construction and Architectural Management, 14(6), 597–617. https://doi.org/10.1108/09699980710829049
ANCE - Associazione Nazionale Costruttori Edili. (2020). http://www.ance.it/
Argote, L. (1999). Organizational Learning: Creating, Retaining, and Transferring Knowledge (1st ed.). Kluwer Academic Publishers.
Argote, L. (2011). Organizational learning research: Past, present and future. Management Learning, 42(4), 439– 446. https://doi.org/10.1177/1350507611408217
Banca d’Italia (2019), Indagine sulle imprese industriali e dei servizi 2019, Roma.
Bapuji, H., & Crossan, M. (2004). From Questions to Answers: Reviewing Organizational Learning Research. Management Learning, 35(4), 397–417. https://doi.org/10.1177/1350507604048270
Barson, R. J., Foster, G., Struck, T., Ratchev, S., Weber, F., & Wunram, M. (2000). Inter- and Intra-Organisational Barriers to Sharing Knowledge in the Extended Supply-Chain. E2000 Conference Proceeding, 12.
Betts, M., Cher, L., Mathur, K., & Ofori, G. (1991). Strategies for the construction sector in the information technology era. Construction Management and Economics, 9(6), 509–528. https://doi.org/10.1080/01446199100000039
Bocken, N. M. P., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes. Journal of Cleaner Production, 65, 42–56. https://doi.org/10.1016/j.jclepro.2013.11.039
Bryde, D., Broquetas, M., & Volm, J. M. (2013). The project benefits of Building Information Modelling (BIM). International Journal of Project Management, 31(7), 971–980. https://doi.org/10.1016/j.ijproman.2012.12.001
BSI (2017). BS 8001:2017. Framework for Implementing the Principles of the Circular Economy in Organizations – Guide. The British Standards Institution, London.
Cerchione, R., & Esposito, E. (2017). Using knowledge management systems: A taxonomy of SME strategies. International Journal of Information Management, 37(1, Part B), 1551–1562. https://doi.org/10.1016/j.ijinfomgt.2016.10.007
Circular Economy Network, & ENEA. (2020). Rapporto sull’economia circolare in Italia. https://circulareconomynetwork.it/rapporto-economia-circolare-2020/
Cortese, C. G. (2005). Learning through Teaching. Management Learning, 36(1), 87–115. https://doi.org/10.1177/1350507605049905
Council Directive 2004/18/EC on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts (Official Journal of the European Union). (2004). L. 134, p.114-240.
Della Torre, E., & Solari, L. (2011). High performance work systems, technological innovations and firm performance in SME: evidences from Italy. International Journal of Entrepreneurial Venturing, 3(4), 375-391. https://doi.org/10.1504/IJEV.2011.043384
Dodgson, M., Gann, D. M., & Phillips, N. (2013). Organizational Learning and the Technology of Foolishness: The Case of Virtual Worlds at IBM. Organization Science, 24(5), 1358–1376. https://doi.org/10.1287/orsc.1120.0807
Durst, S., & Runar Edvardsson, I. (2012). Knowledge management in SMEs: A literature review. Journal of Knowledge Management, 16(6), 879–903. https://doi.org/10.1108/13673271211276173
Egan, J. (1998). Rethinking Construction. HMSO.
EU Commission (2019). Annual report on European SMEs 2018/2019.
European Commission (2016). Green Action Plan for SMEs.
Fiol, M., & Lyles, M. A. (1985). Organizational Learning. Academy of Management Review, 10(4), 803–813. https://doi.org/10.5465/amr.1985.4279103
Freeman, T. (2006). Best practice in focus group research: making sense of different views. Journal of advanced nursing, 56(5), 491-497. https://doi.org/10.5465/amr.1985.4279103
Groak, S. (1994). Is construction an industry? Construction Management and Economics, 12(4), 287–293. https://doi.org/10.1080/01446199400000038
GU D. Lgs 19 aprile 2017 n. 56 (Gazzetta Ufficiale)
Hutchinson, V., & Quintas, P. (2008). Do SMEs do Knowledge Management?: Or Simply Manage what they Know? International Small Business Journal, 26(2), 131–154. https://doi.org/10.1177/0266242607086571
ISTAT (2019), Censimento permanente delle imprese 2019, Roma
Kane, G. C., & Alavi, M. (2007). Information Technology and Organizational Learning: An Investigation of Exploration and Exploitation Processes. Organization Science, 18(5), 796–812. JSTOR. https://doi.org/10.1287/orsc.1070.0286
Kirchherr, J., Reike, D., & Hekkert, M. (2017). Conceptualizing the circular economy: An analysis of 114 definitions. Resources, Conservation and Recycling, 127, 221–232. https://doi.org/10.1016/j.resconrec.2017.09.005
Langley, A. (1999). Strategies for Theorizing from Process Data. Academy of Management Review, 24(4), 691–710. https://doi.org/10.5465/amr.1999.2553248
Lewandowski, M. (2016). Designing the Business Models for Circular Economy—Towards the Conceptual Framework. Sustainability, 8(1), 43. https://doi.org/10.3390/su8010043
Liebowitz, & Wilcox. (1997). Knowledge Management and its Integrative Elements. CRC Press. https://www.crcpress.com/Knowledge-Management-and-its-Integrative-Elements/Liebowitz-Wilcox/p/book/9780849331169
McLaughlin, S., Paton, R. A., & Macbeth, D. K. (2008). Barrier impact on organizational learning within complex organizations. Journal of Knowledge Management, 12(2), 107–123. https://doi.org/10.1108/13673270810859550
Morgan D.L. (1997) Focus Groups as Qualitative Research (Qualitative Research Methods Series, Vol. 16), Thousand Oaks, CA: Sage.
Nembhard, I. M., & Tucker, A. L. (2010). Deliberate Learning to Improve Performance in Dynamic Service Settings: Evidence from Hospital Intensive Care Units. Organization Science, 22(4), 907–922. https://doi.org/10.1287/orsc.1100.0570
Nonaka, I. (1994). A Dynamic Theory of Organizational Knowledge Creation. Organization Science, 5(1), 14–37. https://doi.org/10.1287/orsc.5.1.14
NVIVO (2020) Qualitative Data Analysis Software.
Pauliuk, S. (2018). Critical appraisal of the circular economy standard BS 8001:2017 and a dashboard of quantitative system indicators for its implementation in organizations. Resources, Conservation and Recycling, 129, 81–92. https://doi.org/10.1016/j.resconrec.2017.10.019
Pieroni, M. P. P., McAloone, T. C., & Pigosso, D. C. A. (2019). Business model innovation for circular economy and sustainability: A review of approaches. Journal of Cleaner Production, 215, 198–216. https://doi.org/10.1016/j.jclepro.2019.01.036
Plumwood, V. (2005). Environmental Culture: The Ecological Crisis of Reason. Routledge.
Pomponi, F., & Moncaster, A. (2019). Briefing: BS 8001 and the built environment: a review and critique. Proceedings of the Institution of Civil Engineers - Engineering Sustainability, 172(3), 111–114. https://doi.org/10.1680/jensu.17.00067
Pomponi, F., & Moncaster, A. (2017). Circular economy for the built environment: A research framework. Journal of Cleaner Production, 143, 710–718. https://doi.org/10.1016/j.jclepro.2016.12.055
Rizos, V., Behrens, A., Van der Gaast, W., Hofman, E., Ioannou, A., Kafyeke, T., Flamos, A., Rinaldi, R., Papadelis, S., Hirschnitz-Garbers, M., & Topi, C. (2016). Implementation of Circular Economy Business Models by Small and Medium-Sized Enterprises (SMEs): Barriers and Enablers. Sustainability, 8(11), 1212. https://doi.org/10.3390/su8111212
Smith, D., & Elliott, D. (2007). Exploring the Barriers to Learning from Crisis: Organizational Learning and Crisis. Management Learning, 38(5), 519–538. https://doi.org/10.1177/1350507607083205
Steyaert C. & Bouwen, R. (2004), Group Methods of Organizational Analysis. In Cassel, Catherine(ed.): Essential Guide to Qualitative Methods in Organizational Research. London: Sage, 140-153.
Styhre, A., Josephson, P.-E., & Knauseder, I. (2006). Organization Learning in Non-writing Communities: The Case of Construction Workers. Management Learning, 37(1), 83–100. https://doi.org/10.1177/1350507606060983
Suddaby, R. (2006). From the Editors: What Grounded Theory is Not. Academy of Management Journal, 49(4), 633–642. https://doi.org/10.5465/amj.2006.22083020
Sweis, G., Sweis, R., Abu Hammad, A., & Shboul, A. (2008). Delays in construction projects: The case of Jordan. International Journal of Project Management, 26(6), 665–674. https://doi.org/10.1016/j.ijproman.2007.09.009
Szulanski, G. (1996). Exploring internal stickiness: Impediments to the transfer of best practice within the firm. Strategic Management Journal, 17(S2), 27–43. https://doi.org/10.1002/smj.4250171105
Tura, N., Hanski, J., Ahola, T., Ståhle, M., Piiparinen, S., & Valkokari, P. (2019). Unlocking circular business: A framework of barriers and drivers. Journal of Cleaner Production, 212, 90–98. https://doi.org/10.1016/j.jclepro.2018.11.202
UNI - Ente Italiano di Normazione. (2020). https://www.uni.com/
Urbinati, A., Chiaroni, D., & Chiesa, V. (2017). Towards a new taxonomy of circular economy business models. Journal of Cleaner Production, 168, 487–498. https://doi.org/10.1016/j.jclepro.2017.09.047
Yin, R. K. (2017). Case Study Research and Applications: Design and Methods. SAGE Publications.
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