From waste to value: how Finnish manufacturing sector can adopt circular value chains through systems thinking and service design

Abstract

Our tendency to think in linear ways has begun to test the Earth’s limits. This research is driven by the urgent need to put circular thinking into practice, and thus explores how circular value chain (CVC) innovations can unlock new forms of value and support meaningful, systemic change. Focusing on Finland’s manufacturing industry, the study analyses CVC innovations through the application of R-strategies, identifying key enablers and barriers, and examining how service design and systems thinking can support the linear-to-circular transition. A pragmatist qualitative approach was applied, using semi-structured interviews with experts from manufacturing companies and public sector support organisations.

Data were analysed using the multi-level perspective (MLP) framework to identify drivers, challenges, and patterns across micro, meso, and macro levels. The findings reveal that circularity is not simply an operational shift but a systemic transformation requiring internal alignment, cross-sector collaboration, and enabling policy environments. Among R-strategies, reduce, reuse, recycle, and recover emerged as most commonly applied, while more radical strategies such as refuse, rethink, remanufacture and refurbish remain underutilised due to higher economic and regulatory barriers. At the company level, cost efficiency, leadership commitment, and measurable goals drive the transition. Collaboration, customer demand, regulatory clarity, and growing resource scarcity are critical at broader system levels.

This thesis contributes to circular economy (CE) research by linking theory with practice and introducing the Circular Value Chain Blueprint – a practical tool that applies systems thinking and service design to help companies initiate, map, and redesign value chains through a circular lens. While the path to CVCs is complex, this research demonstrates that with the right mindset, partnerships, and tools, companies can initiate successful transitions towards a more sustainable and resilient manufacturing sector.