Abstract

Purpose - The purpose of this study was to investigate how sustainability and circularity performance indicators are interpreted, understood and used within product realisation processes in a manufacturing organisation and how they support cross-functional collaboration practices. Furthermore, the study aimed to analyse how such indicators may function as boundary objects to support coordination, knowledge integration, and shared understanding across functional domains.

Methodology - The study was conducted as a qualitative single-case study with embedded units of analysis within a global manufacturing organisation. Empirical data were collected through 15 semi-structured interviews with respondents representing multiple organisational functions involved in product realisation processes, including R&D, purchasing, supply chain management, sustainability, and product management. In addition, document studies were conducted using organisational policies, governance documents, annual reports, and internally used sustainability-related material. The interview data were analysed using thematic analysis, while the documents were analysed through content analysis.

Results - The findings show that sustainability and circularity PIs are unevenly developed and interpreted across organisational functions and levels. Environmental indicators were generally more formalised and established than circularity-related indicators, while several functions relied on indirect operational measures rather than explicitly defined sustainability indicators. The study further identified that sustainability and circularity PIs are used in cross-functional practices such as meetings, decision-making, prioritisation activities, and supplier collaboration. However, the findings demonstrate that indicators do not automatically create shared understanding across functions. Instead, their ability to support coordination depends on interaction, interpretation, and organisational conditions. The findings further indicate that sustainability and circularity PIs can function as boundary objects by acting as shared reference points across functions while still allowing local interpretation. At the same time, semantic, and pragmatic knowledge boundaries related to conflicting priorities, differing interpretations, and organisational conditions remain significant challenges.

Contribution - The study contributes theoretically by extending the understanding of sustainability and circularity PIs as boundary objects within cross-functional product realisation processes. Furthermore, the study contributes to research on knowledge integration, and shared understanding by illustrating how sustainability and circularity PIs are interpreted, understood, and used across organisational functions in manufacturing contexts. From a practical perspective, the study provides insights into how manufacturing organisations can structure and use sustainability and circularity PIs to support cross-functional coordination and sustainability-related decision-making.