Transitioning to Circular Business Model: Stakeholder-Driven Insights on Hurdles and Solutions From the Scottish Electronics Industry

The electronics industry struggles to integrate closed loops because macro-level sustainability targets frequently clash with micro-level operational realities. Using an inductive qualitative approach, this study explores value chain breakpoints, multi-level barriers, and collaborative solutions within Scotland’s electronics ecosystem through focus group discussions. The study yields three core findings. First, capital-intensive machinery maintains functional circular loops, while consumer hardware remains linear due to end-of-life information asymmetries. Second, non-disassemblable hardware designs and high diagnostic labour costs render localised repair uneconomical. Third, overcoming these hurdles requires solutions like AI-driven tools, Digital Product Passports, component-retention-based extended producer responsibility metrics, and secondary warranties. The study extends the dynamic capabilities framework to ecosystem-level relational routines, advocates shifting Extended Producer Responsibility metrics to component-retention indicators and provides managers with an operational playbook to de-risk circular transitions.