792727 Master Thesis CBS 2

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792727 Master Thesis CBS 2 WE HAVEN´T COME TO HOTELS YET A Qualitative Study on Circular Textiles in the Hotel Industry in Scandinavia Master of Science in Master Thesis by International Business & Politics Andrea Skjold Frøshaug: 116525 Dina Bekkevold Lingås: 677014 Supervised by Sönnich Dahl Sönnichsen, Department of Marketing Handed In 16.09.2019 Number of Characters: 273.033 Copenhagen Business School, 2019 Number of Pages: 118 Abstract The fashion industry is receiving increasing negative attention for its take-make-waste of clothes. Despite the significant throughput of textiles, the hotel industry has yet to receive similar scrutiny. Initiatives for circular textiles are in-house, small scale and mainly concerning resource efficiency. Within the scope of leased textile, this case study seeks to increase knowledge concerning factors that hinder or induce the integration of circular textile across the hotel value- chain in Scandinavia. Emphasizing how collaboration and alignment between actors can advance circular textiles. Internal barriers identified are knowledge, diffusion of responsibility, high cost and a “chicken and egg” situation were actors are hesitant to commit first. Entering a business “ecosystem dynamic” will mitigate these barriers, but these require multilateral collaboration. Industry actors perceive consumer demand and/or regulation as the most important drivers for faster transition. There is currently no customer demand for circular textile. The linear mindset is the reality in the hotel textile regime, though we see preliminary signs in the mini-level of individuals with a circular mindset, which might constitute a seed for change. KEY WORDS: Circular Economy, Scandinavia, Socio Technical Transitions, Ecosystem Theory, Multilevel Perspective (MLP), The Multiphase Concept, Cradle to Cradle 1 Table of content Table of content ________________________________________________________________________________________ 2 1. Introduction _________________________________________________________________________________________ 0 1.1 Research Question __________________________________________________________________________________ 1 1.2 Structure of the Case Study ________________________________________________________________________ 2 2. Meta Framework - An Introduction to the Circular Economy ______________________________ 3 2.1 Economics of natural resources and the environment _______________________________________ 4 2.2 The Seven Schools of Thought and the Circular Economy System Diagram _______________ 5 2.3 Cradle-to-Cradle ____________________________________________________________________________________ 8 2.4 Contamination _____________________________________________________________________________________ 10 2.5 Circular Business Models ________________________________________________________________________ 11 2.5.1 Product Service Systems _________________________________________________________________________________ 12 2.5.2 Extending Resource Value _______________________________________________________________________________ 13 2.6 Circular textiles ___________________________________________________________________________________ 14 2.6.1 Sustainable sourcing ______________________________________________________________________________________ 14 2.6.2 Extended Life ______________________________________________________________________________________________ 14 2.6.3 Reuse ______________________________________________________________________________________________________ 15 2.6.4 Textile recycling __________________________________________________________________________________________ 15 3. Literature Review _________________________________________________________________________________ 17 4. Case Description __________________________________________________________________________________ 19 4.1 Hotels _______________________________________________________________________________________________ 20 4.1.1 Scandic Hotels _____________________________________________________________________________________________ 21 4.1.2 Nordic Choice Hotels (NCH) ______________________________________________________________________________ 21 4.2 Laundry Services __________________________________________________________________________________ 22 4.2.1 Berendsen _________________________________________________________________________________________________ 22 4.2.2 De Forenede Dampvaskerier (DFD) _____________________________________________________________________ 22 4.3 Textile recyclers __________________________________________________________________________________ 23 4.3.1 Wolkat _____________________________________________________________________________________________________ 23 4.3.2 Hilaturas Ferre S.A (Recover) ____________________________________________________________________________ 23 4.4 Waterstone _________________________________________________________________________________________ 24 4.5 The Waste and Resources Action Program ___________________________________________________ 24 5. Theoretical Framework _________________________________________________________________________ 25 5.1 Socio-Technical-Transition _____________________________________________________________________ 25 2 5.1.1 Socio-Technical Regime __________________________________________________________________________________ 26 5.1.2 Niche _______________________________________________________________________________________________________ 27 5.1.3 Landscape _________________________________________________________________________________________________ 28 5.1.4 Regime Transformation __________________________________________________________________________________ 28 5.2 Maja Göpel - Mindsets ____________________________________________________________________________ 29 5.2.1 The Multiphase Concept __________________________________________________________________________________ 30 5.3 Ecosystem Theory ________________________________________________________________________________ 32 5.3.1 Ecosystem Risks __________________________________________________________________________________________ 33 5.4 Theory integration _______________________________________________________________________________ 35 6. Methodology and Method _______________________________________________________________________ 36 6.1 Philosophy of Science ____________________________________________________________________________ 36 6.1.1 Ontology ___________________________________________________________________________________________________ 37 6.1.2 Epistemology ______________________________________________________________________________________________ 37 6.2 Purpose of research ______________________________________________________________________________ 37 6.3 Research Approach: Inductive __________________________________________________________________ 38 6.4 Research design ___________________________________________________________________________________ 38 6.4.1 Research Strategy: Case Study ___________________________________________________________________________ 39 6.4.2 The role of theory in research design ___________________________________________________________________ 40 6.4.3 Selection of Embedded Units ____________________________________________________________________________ 41 6.5 Methods ____________________________________________________________________________________________ 42 6.5.1 Qualitative approach _____________________________________________________________________________________ 42 6.6 Data collection_____________________________________________________________________________________ 42 6.6.1 Primary data - Interviews ________________________________________________________________________________ 42 6.6.2 Secondary data - Desk Research _________________________________________________________________________ 45 6.7 Data Analysis ______________________________________________________________________________________ 46 6.8 Quality of Research Design ______________________________________________________________________ 47 6.8.1 Construct Validity _________________________________________________________________________________________ 48 6.8.2 External Validity __________________________________________________________________________________________ 48 6.8.3 Reliability __________________________________________________________________________________________________ 49 6.9 Limitations of Case study ________________________________________________________________________ 51 7. Analysis _____________________________________________________________________________________________ 51 7.1 Pre-Development _________________________________________________________________________________ 52 7.1.1 Landscape Developments ________________________________________________________________________________ 52 7.1.2 The Textile Regime for Hotels ___________________________________________________________________________ 54 7.1.3 Niche _______________________________________________________________________________________________________ 65 7.1.4 Summary of Pre-development ___________________________________________________________________________ 68 7.2 Take Off _____________________________________________________________________________________________ 69 7.2.1 Internal Barriers __________________________________________________________________________________________ 69 7.2.2 Mitigating the Initiative
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