Exploring the role of Niche Strategies in overcoming Barriers to Circular Innovation

Abstract

The study embarks on a comprehensive investigation into the domain of circular innovation within Dutch high-tech firms, probing the dynamics of drivers, barriers, and the strategic impact of niche strategies. The research methodology builds upon the adaptable foundation of the Technological Innovation System (TIS) framework, adapting it to the unique contours of circular innovation. This framework guides the research objectives, which encompass discerning the propulsive forces driving circular innovation, unraveling the contextual intricacies, and critically evaluating the applicability of the adapted TIS framework.

Guided by this framework, the research addresses three pivotal sub-questions that delve into the nuances of drivers, barriers and the strategic potency of niche strategies within the circular innovation landscape. The methodology seamlessly interweaves an expansive literature review with in-depth case studies of four distinct Dutch circular high-tech firms. Through rigorous qualitative analysis, recurrent drivers emerge, including the catalytic influence of emerging regulations, collaborative partnerships, strategic product design and value proposition, and intrinsic motivation. On the flip side, barriers encompass the complexities of production systems, complementary products and services, network formation and coordination, and the intricate maze of customer engagement challenges.

Embedded within the empirical insights are four distinct niche strategies, meticulously tailored to specific contexts: the Redesign Niche Strategy, the Decentralization Niche Strategy, the Turnkey Product-Service System (PSS) Niche Strategy, and the Compliance-Driven Stepping-Stone Niche Strategy. These strategies come to light as potent tools in surmounting the entrenched barriers, underscoring the significance of strategic alignment with regulatory shifts, the formation of collaborative networks, and the innovation-driven approach to product design in propelling circular innovation.

The strategic adaptation of the TIS framework to circular innovation not only enriches analytical depth but also highlights its pragmatic relevance. Consultations with experts from HollandCircularHotspot - a platform driving the advancement of the circular economy by facilitating collaboration, knowledge sharing, and representing Dutch circular companies on an international stage, serve to validate the framework's utility, affirming its efficacy in dissecting the ever-evolving landscape of circular innovation. Acknowledging its limitations, such as the limited scope of case studies and the geographical focus on Dutch high-tech companies, the study sets the stage for future research endeavors.

In summation, this thesis offers a substantial contribution to comprehending the dynamics of circular innovation within Dutch high-tech enterprises. It underscores the pivotal role of specific strategies and reaffirms the pertinence of the adapted TIS framework. With its blend of empirical insights and theoretical foundations, the study illuminates potential pathways for circumventing barriers to circular innovation, paving the way for transformative change within the high-tech circular landscape.