Chamirangika Madushani Hetti Arachchige, Supply and Operations Management

The transition from a linear “take–make–dispose” model to a circular economy (CE) is critical for reducing resource use and energy consumption while advancing circular manufacturing in industry. Remanufacturing is a key circular manufacturing strategy that restores end-of-life products to like-new condition, offering substantial potential for value retention and reductions in virgin material and energy use. There is considerable potential for original equipment manufacturers (OEMs) to adopt remanufacturing if its associated challenges can be identified and overcome. One such industry is the furniture industry, which faces significant challenges in implementing remanufacturing due to return-flow uncertainty, process complexities, market resistance, and capability gaps. Despite its potential, remanufacturing remains underexplored from a strategic manufacturing perspective, and there is limited understanding of how organizational capabilities enable firms to integrate remanufacturing into their operations.

This thesis addresses these gaps through two studies. Study 1 employs a systematic literature review to develop the concept of Remanufacturing Manufacturing Strategy (ReMS), demonstrating how manufacturing structures, infrastructures, competitive priorities, and capabilities need to be reconfigured to embed remanufacturing strategically. Study 2 employs a multiple-case study of Swedish furniture OEMs to examine remanufacturing from a dynamic capabilities perspective. This study uncovers market-, production-, and sustainability-related opportunities and barriers, providing insight into how firms sense, seize, and reconfigure resources in the pursuit of remanufacturing.

The findings show that remanufacturing is not only an operational activity but also a strategic, capability-dependent transformation requiring alignment between ReMS and dynamic capabilities. This thesis contributes to manufacturing strategy research by extending it into the circular manufacturing domain and clarifying how capabilities enable remanufacturing adoption, while offering managerial guidance for OEMs seeking to build these capabilities and remain competitive in a resource-constrained future.