The Effect of Circular Economy on Global Value Chains – Evidence from Changing Business Models in the Food Industry

Abstract

The aim of this thesis was to contribute to the scientific literature on circular business models and global value chains. Specifically, this thesis has investigated the effects that changing towards circular business models has on global value chains for established firms in the food industry, as there is a gap in current literature regarding this understanding. The authors conducted a qualitative case study interviewing eight respondents from senior positions in international firms with offices in the Nordic. These interviews provided the authors with four sets of empirical findings; (1) different factors, pressures, and possibilities relating to a circular economy in the food industry; (2) how the implementation of circular economy in business models may be made; (3) changes in the structure of global value chains as an effect of implementing circular business models; (4) changes in control and coordination of global value chains as an effect of implementing circular business models. The authors drew the conclusion that the major findings of this thesis relate to the extension of global value chains into ecosystems consisting of intermingling value chains spanning across industries and countries. The authors also concluded that for circular business models, partnerships play the most significant role as it allows for circular implementation of other business model aspects such as activities and resources. Furthermore, partnerships are concluded to enable the ecosystem structure of global value chains and also change how global value chains are controlled and coordinated as an effect of a change towards circular business models.