The strategic role of chief financial officers in the transition to circular business models

: striking a balance between strategic leadership and financial performance

Abstract

This thesis examines the sociodemographic traits of CFOs that facilitate the shift to circular business models in their firms. The study draws on the Upper Echelons Theory, which explores how top management values impact strategic decisions. Employing both qualitative and quantitative methods, the research validates hypotheses regarding sociodemographic traits. Data was collected from 97 CFOs in circular economy-supporting companies. Expert interviews provide qualitative validation for the empirical results and uncover additional
influential factors. Findings reveal a positive link between younger CFOs and circular model adoption, as well as those with less formal education (bachelor's degrees). Older CFOs might inadvertently hinder transitions and should address this awareness gap. The interviews suggest that willingness to learn in this domain is crucial, hinting at the growing importance of formal sustainability education. Continuous learning in sustainability, especially circular economy, is
vital for CFOs to grasp and navigate the benefits and challenges highlighted here. The impact of CFO tenure varies between the quantitative (positive) and qualitative (negative) study. Moreover, unobservable psychological traits in CFOs appear to positively affect circular model adoption, warranting further exploration.

Date of Award	20 Oct 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Ragnhild Kvålshaugen (Supervisor)