Drivers and barriers for circular development in Swedish furniture industry

Abstract

The Swedish furniture industry is facing increasing pressure to transition towards more circular practices. Low national levels of circularity indicate significant losses of value and resources, while European and national strategies are creating new expectations for industry actors. In this context, circular development is becoming increasingly relevant for furniture manufacturers and the wider network of actors surrounding them. This study investigates how actors in the furniture industry, comprised of mainly small and medium enterprises, currently experience circular economy, and how collaborations can play a part in supporting transition. The study is based on an interview study comprised of 21 interviews held with industry experts in qualitative research design. A key goal was investigating current experiences of circular economy transitions, and to explore how interorganizational collaborations can facilitate development of circular business models through directed and conventional content analysis. Interviews were conducted with actors within the value chain, ranging from suppliers to retailers. A snowball sampling technique was used to identify interviewee candidates. Empirical data was analyzed with 4R (reduce, reuse, repair, recycle) strategies, in a multilevel perspective supported by ARA network framework. The findings show several challenges connected to circular development, including inter- organizational coordination, product design, market demand, logistics, and data management. At the same time, the study identifies important drivers and opportunities. Product longevity, including both technical durability and timeless design, is a central foundation for circularity. Collaboration across the network can also support circular strategies by connecting complementary resources, activities, and roles between actors. The study concludes that circular development in the Swedish furniture industry cannot be understood only as a firm-level issue. Instead, circularity depends on how actors, resources, activities, and system conditions are connected across the wider furniture network. A key condition for circular development is therefore alignment between firm-level capabilities, coordination between actors, and broader system conditions such as regulations, procurement criteria, and market expectations.