IIIEE Theses 2018:35 Wheels of Change How are bike-sharing schemes and bike kitchens institutionalising collaborative consumption and production in Barcelona? Julia Winslow Supervisor Oksana Mont Thesis for the fulfilment of the Master of Science in Environmental Management and Policy Lund, Sweden, September 2018 © You may use the contents of the IIIEE publications for informational purposes only. You may not copy, lend, hire, transmit or redistribute these materials for commercial purposes or for compensation of any kind without written permission from IIIEE. When using IIIEE material you must include the following copyright notice: ‘Copyright © Julia Winslow, IIIEE, Lund University. All rights reserved’ in any copy that you make in a clearly visible position. You may not modify the materials without the permission of the author. Published in 2015 by IIIEE, Lund University, P.O. Box 196, S-221 00 LUND, Sweden, Tel: +46 – 46 222 02 00, Fax: +46 – 46 222 02 10, e-mail: [email protected]. ISSN 1401-9191 How are bike-sharing schemes and bike kitchens institutionalising collaborative consumption and production in Barcelona? Acknowledgements “Plant ideas, rain critical thinking, grow alternatives; Plant critical thinking, rain alternatives, grow ideas; Plant alternatives, rain ideas, grow critical thinking” I found these words painted on the outside of a bicycle kitchen in Barcelona. They perfectly sum up this inspiring research project and my incredible year here at the insti. How did it all go by so quickly? Thanks are due to everyone who contributed to this work––my incredibly responsive interview partners, who were always there to answer my multiple follow-up questions despite being very important people with busy lives. Every one of you inspired me with your sense of purpose! Particular thanks go out to Oksana, I couldn’t have asked for a more supportive and helpful supervisor in times of need. Thanks for sending me to Barcelona! Mis gracias más sinceras a Gaby y Cristi for supporting me in my naïve attempts to translate Spanish interviews. And to my one and only Catalan friend, Jordi, who heard a lot more from me in these last few months than he has in years…you’re the best! A special shout out to the thesis office crew for making this whole process a lot more fun than it should have been. And for supplying me with a steady stream of snacks (you know who you are). And finally, to everyone else who made this year so special: each and every one of you B23ers; my Björkliden babes; Hanna, for all the waves & laughs; Flo, for all the love & adventures; and to my parents whose constant stream of love, support and dog photos got me through the year. Finally, thanks to anyone who reads this thesis, you make it worth it! I Julia Winslow, IIIEE, Lund University Abstract The collaborative economy represents a paradigm shift that could help to address the economic, social and environmental problems of our time. However, its ability to actually deliver that promise is highly disputed. This thesis aims to address the knowledge gap of the types of value that organisations based on collaborative consumption and production actually create, and the strategies that they use to institutionalise themselves in the context of powerful regulative, normative and cultural-cognitive institutions. In order to achieve this objective, the study applies two analytical frameworks to six empirical case studies of bike-sharing schemes and bike kitchens in Barcelona. It was found that the environmental value these organisations create is closely interlinked with the social value they produce, and that this value significantly outweighs any negative impacts of their operations. All case studies were found to employ regulative, normative and cultural-cognitive strategies, but also to be subject to powerful institutions beyond the control of a single actor. Therefore, it is recommended that entrepreneurs, city officials, the public and other stakeholders should all aspire to become institutional changemakers themselves, by engaging in collaborative and open development processes to shape the emerging collaborative economy. This is the first step toward a larger paradigm shift. Keywords: Collaborative economy, business models, institutions, Barcelona, bike-sharing, bike kitchens II How are bike-sharing schemes and bike kitchens institutionalising collaborative consumption and production in Barcelona? Executive Summary This thesis aims to contribute to the knowledge gaps on value creation and institutional strategies in the collaborative economy by applying a framework of sustainable business models and institutional theory to empirical case studies. Problem Definition We are trapped in a system of overconsumption that exceeds the carrying capacity of our planet (Global Footprint Network, 2018), but there is evidence that a paradigm shift is underway. A global decline in trust of institutions, changing values and the decentralisation of supply and demand enabled by technological developments, have given rise to a new market system called the collaborative economy. It has fostered new business models that are challenging our linear market system by selling access instead of ownership and empowering consumers to become producers themselves. The collaborative economy holds promises of economic empowerment for individuals, improved social cohesion, and reduced environmental impact by decreasing demand for new products (Botsman & Rogers, 2011). But what some call “a greener form of capitalism” (Stokes, Clarence, Anderson, & Rinne, 2014) is regarded by others as “neoliberalism on steroids” (Murillo, Buckland, & Val, 2017). In reality, the collaborative economy is an emerging field which has not yet established the necessary regulative, normative and cultural-cognitive institutions under which it can reach its full potential. This presents an opportunity for the public, entrepreneurs, organisations and governments to actively engage in shaping the regulations, norms and behaviours that can influence the collaborative economy in ways that enable it to deliver its true promise. In order to tap into this opportunity, there is a need to understand the types of value these new organisations create, and the strategies they employ to institutionalise themselves. Mont, Voytenko and Zvolska (2018) have proposed a model for analysing the institutionalisation strategies employed by urban sharing organisations, however it has not yet been tested empirically. Therefore, this thesis serves two aims: 1) To address the knowledge gaps on value creation and institutional strategies in the collaborative economy, by applying a framework of sustainable business models and institutional theory to empirical case studies. 2) To provide an empirical test of the analytical model proposed by Mont et al. (2018). To achieve these aims, this thesis analyses case studies representing collaborative consumption and production, unified by a common product: bike-sharing schemes and bike kitchens. Bike- sharing has become a popular first/last mile solution in European cities, where it has notably improved cycling modal share in cities without traditional cycling cultures (DeMaio, 2009). Bike kitchens are DIY repair studios that are typically non-profit, grassroots initiatives, and therefore are interesting to compare to the more top-down approach of public and private bike-sharing organisations. III Julia Winslow, IIIEE, Lund University The city of Barcelona provides an appropriate institutional setting for this study. It is a highly populated city struggling with high vehicle density and air pollution. The city lacked a cycling culture until its public bicycle system, one of the first and largest schemes in Europe, was introduced in 2007. In addition, the collaborative economy is under hot debate in Barcelona due to the controversial role of Airbnb in the city’s housing crisis (Russo & Scarnato, 2018). Barcelona is home to one of Europe’s largest squatting communities, who are not only protesting against the root causes of housing crisis, but also have a vibrant culture of collaborative workshops and maker-spaces such as bike kitchens. Research Questions This thesis aims to fulfil the abovementioned objectives by answering the following research question and sub-questions: How are bike sharing schemes and bike kitchens institutionalising collaborative consumption and production in Barcelona? 1. What types of value do they create? 2. What strategies do they use to institutionalise themselves? Methodology and Research Design The research takes a constructivist approach, employing a case study design. It utilises a rich variety of primary and secondary data sources collected prior to, during and after a two-and-a- half-week field visit to Barcelona. Sources included seven semi-structured interviews, field notes, photographs, academic journals, grey literature, websites, press articles and social media. The data was analysed using two pre-defined frameworks designed to answer the research questions, the first rooted in research on sustainable business models (2010, p. 14) and the second based on the framework for institutional strategies by Mont et al. (2018). The second framework was used to produce pre-defined codes for analysing triangulated data sources in NVivo software. Photos and direct quotations are included in the analysis to create a ‘vicarious experience’ for the reader (Stake, 1995). Main Findings It was found that the environmental value created by BSS and bike kitchens is inherently linked