Exploring reluctance to circular business models – the case of light as a service

¹ RISE Research Institutes of Sweden, Sustainable Business, Sven Hultins plats 5, 412 58 Gothenburg, Sweden
² Chalmers Industriteknik, Sven Hultins plats 1, 412 58 Gothenburg, Sweden
³ DFDS Logistics Göteborg, Sydatlanten 10, 418 34 Gothenburg, Sweden

^* Corresponding author: emma.rex@ri.se

Abstract

Selling light as a service is one example of a service-based business model that could enable a more circular economy. However, despite a growing interest to become more circular, there is still hesitation among customers to change the way they meet their need for light. In an ongoing project, we explore this reluctance and seek to identify obstacles and driving forces for large customer organizations to buy light as a service. As a first step, an interview study and a workshop were made to identify current perceptions in a broad range of stakeholders including lighting manufacturers, suppliers of light as a service, light designers and architects, private and public customers, collaborative bodies, and sector organizations. The focus was on large customers (municipalities and property companies) and on indoor lighting in offices and schools in Sweden. Barriers and driving forces could be found in 5 categories: environmental impact, economic consequences, social effects, competence, and roles and responsibilities. The analysis points to the importance of increasing knowledge, reducing uncertainties, and creating trust between actors in the business ecosystem to decrease barriers to change. It also appears extending the value proposition and increasing emphasis on social and user benefits are key for light as a service to become competitive with traditional business models.