The Circular Influencer

A research into the impact of incentives in the circular strategic decision-making processes within project management stakeholders

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Abstract

The increasing significance of the circular economy in the real estate construction industry is driven by evolving environmental, social, political, and economic factors. While there is increasing pressure for a national transition to a circular building economy, the sector continues to confront numerous challenges, risks, and uncertainties. To promote pro-circular decision-making among project management stakeholders, this research investigates how incentives need to be implemented in order to be an effective strategy to encourage project management stakeholders in making pro circular project decisions.

During the research an overall research strategy, the systemic design toolkit, has been used. This method integrates systems thinking with a human-centered, multi-stakeholder focus, by addressing the intricate social, economic, and environmental aspects of the issue at hand. The study comprises two sections: a theoretical segment employing quantitative research and an empirical segment employing qualitative research.

The theoretical phase explores the interorganizational dynamics that influence circular decision-making, delves into the roles and perspectives of project management stakeholders, and examines the concept of incentives. The empirical phase starts with semi-structured interviews to gain insights into the behavior, intentions, interrelationships, interests, and influence of relevant actors involved in decision-making processes. Subsequently, unstructured brainstorming and validation interviews are conducted to identify and develop effective incentives within the financial, social, and moral clusters.

The research findings provide empirical evidence that incentives can serve as a viable strategy for motivating project management stakeholders to make pro-circular strategic project decisions. These incentives are integrated into a comprehensive incentive scheme, outlined in the concluding section of the findings. Through the adoption of these incentives, stakeholders can be effectively motivated to embrace circular principles and actively contribute to the establishment of a circular building economy. Additionally, some key variables have been identified as influential factors in the success of the incentives: the involvement of supplying stakeholders and the targeted audience, as well as a thorough understanding of the rationale behind circular project rejection, the prevailing power dynamics, and the degree of stakeholder involvement throughout the various design phases.