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Co-Evolution of Business Strategies in material and construction industries and public policies

English title Co-Evolution of Business Strategies in material and construction industries and public policies
Applicant Kytzia Susanne
Number 172383
Funding scheme NRP 73 Sustainable Economy
Research institution Hochschule für Technik Rapperswil (HSR)
Institution of higher education Eastern Switzerland University of Applied Sciences - OST
Main discipline Other disciplines of Engineering Sciences
Start/End 01.10.2017 - 30.11.2021
Approved amount 435'533.00
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All Disciplines (2)

Discipline
Other disciplines of Engineering Sciences
Science of management

Keywords (6)

material cycles; dynamic material flow modelling; system dynamic modelling; business models and strategies; transition management; resource efficiency

Lay Summary (German)

Lead
In einem interdisziplinären Team untersuchen wir, wie wirtschaftlicher Wandel, angetrieben durch Geschäftsstrategien, und Veränderung rechtlicher und politischer Rahmenbedingungen, angetrieben durch öffentliche Politiken, wirksamer aufeinander abgestimmt werden kann.
Lay summary

Hintergrund
Die Baubranche befindet sich im Umbruch. Während sich Bauunternehmen früher auf ihr Kerngeschäft beschränkten, – den Abbau von Kies und Lieferung von Komponenten und Beton – beobachten wir seit etwa 15 Jahren eine fortschreitende Diversifizierung. Auslöser sind Veränderungen der politischen und rechtlichen Rahmenbedingungen in der öffentlichen Beschaffung, ebenso wie in der Abfallwirtschaft, im Klimaschutz oder in der Raumplanung. Aus umweltpolitischer Sicht sind diese Veränderungen in der Baubranche äusserst interessant, weil sie die Wirksamkeit der Politiken erhöhen können,
z.B. durch erhöhte Verfügbarkeit von Recycling-Beton und besseres Know-How.

Ziel
Ziele unserer Arbeit sind :

  • Empfehlungen erarbeiten für Akteure aus Politik und Verwaltung zur Entwicklung von Massnahmen und Instrumenten für eine Kreislaufwirtschaft im Bauwesen und für die Förderung eines effizienten Einsatzes mineralischer Rohstoffe (=> Wirksamkeitsanalyse von Politiken).

  • Verbesserte Entscheidungsgrundlagen liefern für Unternehmen der Bauwirtschaft zur Weiterentwicklung ihrer Geschäftsmodelle im Sinne einer nachhaltigen Wirtschaft (=> Markt- und Konkurrenzanalyse unter Berücksichtigung alternativer Politiken).


Bedeutung
Mineralische Baustoffe sind eine der wichtigsten inländischen Ressourcen. Jedoch führt ihre Nutzung zu erheblichen Materialumsätzen und Verkehrsaufkommen. Durch das Schliessen der Materialkreisläufe im Bauwesen kann diese Situation deutlich verbessert werden. Bauunternehmen werden so zu Dienstleistern in der Materialbewirtschaftung von Baustellen und ihr Umsatz und Gewinn wird vom Verbrauch von natürlichen Rohstoffen unabhängiger (Entkopplung von Wirtschaftswachstum und Ressourcenverbrauch).

Direct link to Lay Summary Last update: 27.02.2018

Lay Summary (French)

Lead
Nous étudions, au sein d’une équipe interdisciplinaire composée d’économistes, d’ingénieurs et de modélistes, de quelle manière il est possible de coordonner plus efficacement la mutation économique (initiée par des stratégies commerciales) et les changements opérés dans les conditions-cadres politiques et législatives (initiées par des politiques publiques).
Lay summary

Contexte
Le secteur de la construction est en pleine mutation. Si les entreprises de construction pouvaient autrefois se limiter à leur cœur de métier (p. ex. l’exploitation de gravières et la livraison de composants et de béton), nous observons une diversification progressive depuis une quinzaine d’années. Ceci est le résultat des changements opérés dans les conditions-cadres politiques et juridiques, qu'il s'agisse du domaine des marchés publics comme de celui de la gestion des déchets, de la protection du climat ou encore de l’aménagement du territoire. D’un point de vue de la politique environnementale, ces changements introduits dans la branche de la construction sont particulièrement intéressants, car ils renforcent l’efficacité des politiques (p. ex. par une plus grande disponibilité du béton recyclé et un savoir-faire amélioré).

Objectifs
L’objectif de notre travail est de fournir:

  • des recommandations aux acteurs du système politique et administratif pour qu’ils élaborent des mesures et des instruments d’économie circulaire dans la construction et encouragent une utilisation efficace des ressources minérales (=> analyse de l’efficacité des politiques);

  • de meilleurs outils de décision à destination des entreprises actives dans le secteur de la construction afin de faire évoluer leur modèle d’affaires dans le sens d’une économie durable (=> analyse du marché et de la concurrence en tenant compte des politiques alternatives).


Importance

Les matériaux minéraux de construction sont l’une des ressources nationales les plus importantes. Cependant, leur exploitation entraîne des volumes de trafic et de vente de matière considérables. Boucler le cycle des matières dans le secteur de la construction pourrait significativement améliorer cette situation. Les entreprises de construction deviendront ainsi les gestionnaires des matériaux utilisés sur les chantiers, tandis que leurs chiffres d’affaires et bénéfices seront moins dépendants de la consommation des ressources naturelles (découplage entre croissance économique et utilisation des ressources).

Direct link to Lay Summary Last update: 27.02.2018

Lay Summary (English)

Lead
In an interdisciplinary team of economists, engineers and modellers we are examining how economic change (driven by business strategies) and changes in legal and political framework conditions (driven by public policies) can be coordinated more effectively.
Lay summary

Background
The construction industry is undergoing radical change. Whereas in the past, construction companies limited themselves to their core business – such as the mining of gravel and the supply of components and concrete – for the last 15 years we have observed on-going diversification. The triggers here are changes in the political and legal frameworks, in public procurement, in waste management, climate protection and spatial planning. From an environmental point of view, these changes in the construction industry are of particular interest in that they increase the effectiveness of policies (e.g., through increased availability of recycling concrete and better know-how).

Aims
The aims of the project are:

  • To draw up recommendations for players from politics and administration for developing measures and instruments for a circular economy in the construction industry, and for the promotion of an efficient use of construction minerals (=> effectiveness analysis of policies). 

  • To deliver improved decision-making bases for companies in the construction industry to further develop their business models in the sense of a sustainable economy (=> market and competitive analyses taking alternative policies into account).

Importance
Construction minerals are one of the most important domestic resources. However, their use leads to considerable material turnover and traffic volumes. The current situation can be significantly improved by closing the material cycles in the construction industry. Construction companies can then become service providers in materials management of construction sites, and their turnover and profit will become less dependent on the use of natural raw materials (de-coupling of economic growth and resource use).

Direct link to Lay Summary Last update: 27.02.2018

Responsible applicant and co-applicants

Employees

Project partner

Publications

Publication
Uncertainty, variability, price changes and their implications on a regional building materials industry: The case of Swiss canton Argovia
Meglin Ronny, Kytzia Susanne, Habert Guillaume (2022), Uncertainty, variability, price changes and their implications on a regional building materials industry: The case of Swiss canton Argovia, in Journal of Cleaner Production, 330(129944), 1-12.
Closing the mineral construction material cycle – An endogenous perspective on barriers in transition
Kliem Daniel, Scheidegger Alexander, Kopainsky Birgit (2021), Closing the mineral construction material cycle – An endogenous perspective on barriers in transition, in Resources, Conservation and Recycling, 175, 105859-105859.
Regional circular economy of building materials: Environmental and economic assessment combining Material Flow Analysis, Input‐Output Analyses, and Life Cycle Assessment
Meglin Ronny, Kytzia Susanne, Habert Guillaume (2021), Regional circular economy of building materials: Environmental and economic assessment combining Material Flow Analysis, Input‐Output Analyses, and Life Cycle Assessment, in Journal of Industrial Ecology, 1-15.
Co-Evolution of Business Strategies in material and construction industries and public policies
Kytzia Susanne, Meglin Ronny, Kliem Daniel, Scheidegger Alexander, Hügel Katrin (2020), Co-Evolution of Business Strategies in material and construction industries and public policies, in BEYOND 2020 – World Sustainable Built Environment conference, online 588(4), 042032-042032, IOP Publishing Ltd, UK 588(4), 042032-042032.
The co-evolution of business models and public policies in transitions - A system dynamics perspective
Kliem D., Hügel K., Scheidegger A. (2020), The co-evolution of business models and public policies in transitions - A system dynamics perspective, in IOP Conference Series: Earth and Environmental Science, 588(4), 042031-042031, IOP Publishing, Bristol 588(4), 042031-042031.
Local business models in transition
KliemDaniel (2019), Local business models in transition, in New Business Models for Sustainable Entrepreneurship, Innovation, and Transformation, BerlinESCP Europe, Berlin.
Business-models of gravel, cement and concrete producers in Switzerland and their relevance for resource management and economic development on regional a scale
MeglinRonny, KytziaSusanne, KliemDaniel, ScheideggerAlexander (2019), Business-models of gravel, cement and concrete producers in Switzerland and their relevance for resource management and economic development on regional a scale, in SUSTAINABLE BUILT ENVIRONMENT CONFERENCE 2019 (SBE19 Graz) , Graz IOP Publishing Ltd, https://iopscience.iop.org/.
Environmental assessment in the building materials industry: How are the results of Life-Cycle-Assessment (LCA) for concrete influenced by technology and regulations?
Meglin Ronny (2019), Environmental assessment in the building materials industry: How are the results of Life-Cycle-Assessment (LCA) for concrete influenced by technology and regulations?, in Fifth International Conference on Sustainable Construction Materials and Technologies (SCMT5), Kingston upon ThemesCoventry University, online.
Participative governance of the Swiss construction material industry – Transitioning business models and public policy
Kliem Daniel, Scheidegger Alexander, Participative governance of the Swiss construction material industry – Transitioning business models and public policy, in wird ergänzt wird ergänzt (ed.), Springer Verlag, Berlin Heidelberg.

Datasets

CUBIC - Stella Simulation file

Author Kliem, Daniel
Publication date 21.07.2021
Persistent Identifier (PID) none
Repository CCUBIC - A Sytem Dynamics Model of swiss construction material industries transition towards a circular economy


Collaboration

Group / person Country
Types of collaboration
NFP 73 - Project "Post-fossil cities" Switzerland (Europe)
- in-depth/constructive exchanges on approaches, methods or results
Institutionen der Bauwirtschaft Switzerland (Europe)
- Industry/business/other use-inspired collaboration
Leibniz Institut für ökologische Raumentwicklung Germany (Europe)
- in-depth/constructive exchanges on approaches, methods or results
Unternehmen der Bauwirtschaft Switzerland (Europe)
- Industry/business/other use-inspired collaboration
Jura Management AG Switzerland (Europe)
- Industry/business/other use-inspired collaboration

Scientific events

Active participation

Title Type of contribution Title of article or contribution Date Place Persons involved
2021 International System Dynamics Conference- From insights to action: Resilience to global problems Talk given at a conference Managing transitions or merely fishing in the dark? 28.07.2021 Chicago/virtual, United States of America Kliem Daniel;
2021 International System Dynamics Conference- From insights to action: Resilience to global problems Talk given at a conference Participative modeling in transitions –Uncovering emerging insights 27.07.2021 Chicago/virtual, United States of America Kliem Daniel; Hügel Katrin; Kopainsky Birgit;
2021 International System Dynamics Conference- From insights to action: Resilience to global problems Talk given at a conference Closing the mineral construction material cycle – An endogenous perspective on barriers in transition 26.07.2021 Chicago/ Virtual, United States of America Kliem Daniel; Kopainsky Birgit; Scheidegger Alexander;
BEYOND 2020 – World Sustainable Built Environment conference Poster Assessment of regional Building Material Producers combining Material-Flow-Analysis and Life-Cycle-Assessment 02.11.2020 Göteborg, online, Sweden Meglin Ron; Kytzia Susanne;
BEYOND 2020 – World Sustainable Built Environment conference Talk given at a conference The co-evolution of business models and public policies in transitions - A system dynamics perspective 02.11.2020 Göteborg, Sweden Kliem Daniel; Hügel Katrin; Scheidegger Alexander;
BEYOND 2020 – World Sustainable Built Environment conference Talk given at a conference Co-Evolution of Business Strategies in material and construction industries and public policies 02.11.2020 Göteborg, Sweden Kliem Daniel; Meglin Ron; Kytzia Susanne; Hügel Katrin; Scheidegger Alexander;
2020 Conference of the System Dynamics Society - Learning from the past to inspire the future Talk given at a conference Localizing the circular economy - mining the urban ressource 21.07.2020 Bergen/online, Norway Hügel Katrin; Kliem Daniel;
2020 Conference of the System Dynamics Society - Learning from the past to inspire the future Poster Validation as learning - Iterating qualitative structure and quantitative behaviour in GMB workshops 21.07.2020 Bergen/online, Norway Kliem Daniel; Hügel Katrin;
74rd LCA Forum "LCA in the NRP 73 «Sustainable Economy»" Talk given at a conference Environmental and economic assessment of regional building materials industries combining material-flow-analysis, input-output-analyses and life-cycle-assessment 29.06.2020 Zürich, online, Switzerland Kytzia Susanne; Meglin Ron;
Dresden Nexus Conference 2020: Circular Economy in a Sustainable Society Talk given at a conference Implication of urban development on building material induced land use 04.06.2020 Dresden, online, Germany Kytzia Susanne; Kliem Daniel;
Dresden Nexus Conference 2020: Circular Economy in a Sustainable Society Talk given at a conference Sustainability Assessment of regional Building Material Producers based on Material-Flow-Analysis and Life-Cycle-Assessment 04.06.2020 Dresden, online, Germany Meglin Ron; Kytzia Susanne;
SPRU PhD 2020 Forum- Collaboration for STI Talk given at a conference “The co-evolution of business models and public policies in transitions” – A case study on the swiss construction material industry 14.05.2020 online, Great Britain and Northern Ireland Kliem Daniel;
19th European Roundtable of Production and Consumption Talk given at a conference Regional business models for circularity in the construction material industry 15.10.2019 Barcelona, Spain Kliem Daniel;
SUSTAINABLE BUILT ENVIRONMENT CONFERENCE 2019 Talk given at a conference Business-models of gravel, cement and concrete producers in Switzerland and their relevance for resource management and economic development on regional a scale 12.09.2019 Graz, Austria Kliem Daniel; Scheidegger Alexander; Kytzia Susanne; Meglin Ron;
Sustainable Built Environment D-A-CH Conference 2019 Talk given at a conference Business-models of gravel, cement and concrete producers in Switzerland and their relevance for resource management and economic development on regional a scale 11.09.2019 Graz, Austria Meglin Ron; Kytzia Susanne;
Fifth International Conference on Sustainable Construction Materials and Technologies (SCMT5) Talk given at a conference Environmental assessment in the building materials industry: How are the results of Life-Cycle-Assessment (LCA) for concrete influenced by technology and regulations? 15.07.2019 Kingston upon Thames , Great Britain and Northern Ireland Meglin Ron; Kytzia Susanne;
New Business Model conference Talk given at a conference Local Business Models in Transition 03.07.2019 Berlin, Germany Kliem Daniel;
13th Conference of the International Society for Industrial Ecology (ISIE) Talk given at a conference Environmental and economic assessment of building materials on regional scale: A comparative case study of the life cycle of concrete building materials in two regions in Switzerland 12.05.2019 Berlin, Germany Kytzia Susanne; Meglin Ron;
4th NEST conference Talk given at a conference Regime visions as barriers to transitions 04.04.2019 Lisbon, Portugal Kliem Daniel;
36th International Conference of the System Dynamics Society Talk given at a conference Transition management in the swiss construction industry   06.08.2018 Reykjavík, Iceland Scheidegger Alexander; Kliem Daniel;


Self-organised

Title Date Place
Expertenworkshop „Materialfuss und CO2-Fussabdruck der gebauten Umwelt“ 11.03.2019 Rapperswil, Switzerland

Knowledge transfer events

Active participation

Title Type of contribution Date Place Persons involved
Holcim Betontagung Talk 01.09.2021 Zürich, Switzerland Kytzia Susanne;
VNL Switzerland - Circular Economic Systems Talk 01.06.2021 online, Switzerland Kliem Daniel;
KSE-Parlamentarierlunch Talk 26.11.2019 Berne, Switzerland Kytzia Susanne; Scheidegger Alexander;
Vierter arv Herbstanlass Talk 18.09.2019 Bern, Switzerland Scheidegger Alexander;
Konferenz ADT Talk 21.05.2019 Bern, Switzerland Scheidegger Alexander; Kytzia Susanne;
Swiss Resource Forum Talk 25.10.2018 Dübendorf, Switzerland Kytzia Susanne; Meglin Ron; Kliem Daniel;
12. ewp-Bauleiter-Planer-Kolloquium Talk 17.10.2018 Thalwil, Switzerland Kytzia Susanne;


Self-organised

Title Date Place
Teilprojekt Simulationsmodel - Group Model Building Workshop V 31.10.2019 Zurich, Switzerland
Teilprojekt Simulationsmodel - Group Model Building Workshop IV 27.08.2019 Berne, Switzerland
Teilprojekt Simulationsmodel - Group Model Building Workshop II 01.02.2019 Zürich, Switzerland
Teilprojekt Simulationsmodel - Group Model Building Workshop III 01.02.2019 Zurich, Switzerland
Teilprojekt Simulationsmodel - Group Model Building Workshop I 24.05.2018 Zürich, Switzerland

Abstract

Traditionally, gravel, cement and concrete producers focus on their role as material or resource suppliers. The higher the material turnover, the higher the economic success. Hence, the business-model is in conflict with the societal goal of increased resource efficiency. Driven by stricter regulations, some companies have recently developed new business models focusing on additional services in waste management and logistics. From a policy perspective, such diversification strategies are very interesting because they accelerated changes in economic structures that lead to increased resource efficiency. In the proposed project, we introduce a strategy to better coordinate economic change (driven by business strategies) with development of boundary conditions (driven by public policies). We introduce the term “co-evolution” describing a process of mutual learning between representatives of public policies and business. To this end we use system dynamic modelling in combination with integrated assessment as tools for analysis, assessment as well as communication. With our research, we intend to identify (i) how public policies influence the economic success of alternative business strategies with focus on vertical integration in the material and construction sector and (ii) how alternative business strategies change the use of construction minerals in Switzerland. We finally hope to come up with recommendations for policy makers on how measures and instruments should be further developed to finally close loops in material recycling and increase resource efficiency.
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