Supply chain disruptions can accelerate circular economy adoption in construction, but institutional support is crucial.

Why It Matters

Understanding the interplay between external shocks and internal business strategies is vital for designers and engineers. This insight highlights that while crises can force innovation towards sustainability, systemic change requires proactive policy and market development to overcome inertia and resistance.

Key Finding

While supply chain crises can push construction firms towards circular economy solutions, current regulations and customer preferences often prevent full adoption, despite companies expecting these factors to support CE in the future.

Key Findings

• Extraordinary supply chain disruptions can lead to diverse sourcing practices, some supporting circular economy (CE) adoption.
• A fundamental CE transition was suppressed by the lack of institutional enablement, specifically experienced regulations and customer priorities.
• Construction companies anticipate future regulations and customer priorities to promote CE adoption, creating a contradiction with current experiences.

Research Evidence

Aim: How do extraordinary supply chain disruptions influence the adoption of circular economy practices within the construction industry, and what institutional factors enable or hinder this transition?

Method: Qualitative study

Procedure: The study explored pre-pandemic sourcing practices and new, circular economy-relevant practices that emerged in 20 Finnish construction companies following COVID-19-initiated supply chain disruptions, analyzing these through the lens of institutional pressures.

Sample Size: 20 participants

Context: Construction industry, Finland

Design Principle

Design for resilience and circularity by anticipating and leveraging external pressures, while actively working to shape the institutional landscape that supports sustainable practices.

How to Apply

When developing new construction materials or systems, consider modularity, disassembly, and the use of recycled or locally sourced components. Engage with stakeholders to understand regulatory hurdles and customer perceptions regarding sustainable building practices.

Limitations

The study focuses on Finnish construction companies and may not be generalizable to all regions or industries. The findings are based on experienced and anticipated institutional pressures, which are subjective.

Student Guide (IB Design Technology)

Simple Explanation: Big problems with getting materials (like during COVID) can make construction companies try to reuse materials more. But, they can't fully switch to reusing things because the rules and what customers want don't support it yet, even though companies think they will in the future.

Why This Matters: This research shows that even when there's a good reason to be more sustainable (like during a crisis), real change needs support from rules and people's choices. It helps you understand the bigger picture beyond just the technical design.

Critical Thinking: To what extent can individual design projects overcome systemic institutional barriers to circular economy adoption, or is broader societal and governmental action a prerequisite?

IA-Ready Paragraph: This research highlights that while supply chain disruptions can create opportunities for adopting circular economy principles in construction, the transition is often impeded by a lack of supportive regulations and customer acceptance. Companies anticipate future institutional enablement, revealing a gap between current realities and future expectations, underscoring the need for proactive policy and market development to foster sustainable practices.

Project Tips

• When researching material sourcing, consider how global events might impact availability and explore local alternatives.
• Investigate existing regulations and customer attitudes towards recycled or reused materials in your design context.

How to Use in IA

• Reference this study when discussing the external factors influencing design choices, particularly in relation to sustainability and supply chain resilience.
• Use the findings to justify the exploration of circular economy principles in your design project, acknowledging potential barriers.

Examiner Tips

• Demonstrate an understanding of how external factors, such as economic conditions or policy, can influence design decisions and the feasibility of sustainable solutions.
• Critically evaluate the role of institutional support in the successful implementation of innovative design strategies.

Independent Variable: Extraordinary supply chain disruptions (e.g., COVID-19 pandemic)

Dependent Variable: Adoption of circular economy practices in sourcing and material use

Controlled Variables: Institutional pressures (regulations, customer priorities), company pre-pandemic sourcing practices

Strengths

• Provides a qualitative insight into the complex interplay of external shocks and internal strategies for CE adoption.
• Identifies a critical contradiction between anticipated and experienced institutional support for CE.

Critical Questions

• How can designers proactively influence customer perception and regulatory frameworks to support circular economy solutions?
• What are the most effective strategies for building CE ecosystems within the construction industry, especially in the absence of strong institutional mandates?

Extended Essay Application

• Investigate the impact of specific supply chain disruptions on the material choices and design strategies for a construction-related product or system.
• Propose design interventions that could foster circularity, while also addressing potential regulatory or market barriers identified in this research.

Source

Extraordinary supply chain disruptions and the circular economy transition in the construction industry – An opportunity within crisis? · Sustainable Production and Consumption · 2024 · 10.1016/j.spc.2024.03.032