Circular Economy in the Construction Industry: Barriers and Drivers for the Implementation of Circularity in Family‐Owned Construction Companies in Germany

Elena Elisabeth Vollmers and Thomas B. Long

Business Strategy and the Environment, 2025, vol. 34, issue 5, 6159-6183

Abstract: The circular economy can enhance business sustainability, but its implementation requires the integration of circularity into business models. Circular business model innovation (CBMI) is complex, influenced by multiple barriers and drivers. This research conducts a qualitative case study via semistructured interviews to explore CBMI within the German construction industry and family‐owned businesses. While findings resonate with existing literature, the context of the construction industry and of family ownership introduces specific dynamics. For instance, we find that family ownership can act as both a driver and a barrier to CBMI, fostering long‐term strategic vision while simultaneously reinforcing conservative tendencies, hindering change. Additional notable results include the importance of intergenerational knowledge transfer, an emphasis on slowing resource loops due to long building lifecycles (50–100 years), and the opportunities presented through lobbying efforts to shape policy and industry standards. Accordingly, these interactions necessitate tailored strategies for successful circular transitions.

Date: 2025
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