Circular business models for sustainable development: A “waste is food” restorative ecosystem

Our aim is to provide a better understanding of a business model based on circular principles. In particular, we focus on two issues that support the development of a circular business model: (a) the focal actor as orchestrator of the circular network and (b) the circular ecosystem encompassing suppliers, customers, research centers, and public authorities, in which each actor/stakeholder plays a specific role, based on effective interorganizational relationships. The research method applied is an in‐depth nested single case study of a circular project. Our results highlight an exemplar case of an ecosystemic business model in agriculture, involving different types of innovation and strong collaboration among network members, orchestrated by a focal firm. The abductive approach used led to the formulation of some research propositions and to the identification of some adoption factors and barriers to growth in circular business models.     

利益相关者对商业生态系统的影响分析模式

文章通过从利益相关者的角度来分析研究商业生态系统,建立了利益相关者对商业生态系统影响的评价体系,构建了商业生态系统中的利益相关者定量分析模式,并通过例证加以分析。这一分析模式有助于帮助企业提高竞争力水平,对指导商业生态系统的良好发展具有一定的意义。     

Organizational transition management of circular business model innovations

Scholars and practitioners across fields increasingly recognize that business models for the circular economy may be an effective lever for solving ecological persistent problems such as climate change, biodiversity loss, and growing natural resource scarcity. Despite a growing interest in the potential of circular business models, interconnections between the organizational dimensions of firms and their business model innovation processes remain underexplored. Based on problem‐centered expert interviews with business consultants experienced in circular business development, this study creates a conceptual model that offers structured knowledge about why firms steadily reproduce linear BMs and how incumbents manifest themselves as a constant linear‐oriented value creation system. The model also demonstrates organizational conditions and management strategies that frustrate the reproduction of linear BMs and, thus, enable initial moves towards CBM innovation. Building on this, the article provides a set of propositions on how an organizational transition management may be configured and what incumbents require to successfully navigate circular business model innovation. The findings provide a foundation for a contemporary understanding of circular business model transition management, which simultaneously serve as impulses for future research investigations.     

Enabling the Circular Economy transition: a sustainable lean manufacturing recipe for Industry 4.0

Over the past 10 years, the concepts and objectives of circular economy have been increasingly detailed and become strategic issues of international, European, and national policies. However, the transition towards circular production models continues to be affected by several barriers and critical factors that make the transition difficult to achieve. The paper tries to design a relationship between sustainable production and lean production, highlighting the opportunity to invest in reverse-logistics and how Industry 4.0 system represents a breeding ground for circular economy targets application. The aim of the current study is to examine the relationships among sustainable production, lean production, and Industry 4.0 in order to evidence the need to adopt a lean methodology and Industry 4.0 technologies in a sustainable development perspective for companies. Following a holistic vision, the authors summarize the production principles and formulas, which, although in parallel, lead to similar results and therefore represent the pillars of a competitive and sustainable business. In conclusion, exploring the circular economy principles and production chain model, challenges, opportunities, and future outlooks are formulated.     

Circular Business Model Innovation: Inherent Uncertainties

Circular business models based on remanufacturing and reuse promise significant cost savings as well as radical reductions in environmental impact. Variants of such business models have been suggested for decades, and there are notable success stories such as the Xerox product–service offering based on photocopiers that are remanufactured. Still, we are not seeing widespread adoption in industry. This paper examines causes for reluctance. Drawing on a hypothesis‐testing framework of business model innovation, we show that circular business models imply significant challenges to proactive uncertainty reduction for the entrepreneur. Moreover, we show that many product–service system variants that facilitate return flow control in circular business models further aggravate the potential negative effects of failed uncertainty reduction because of increased capital commitments. Through a longitudinal action research study we also provide a counterexample to many of the challenges identified in previous studies, which could be overcome in the studied case. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

Unravelling the design process of business models from linear to circular: An empirical investigation

In the last years, circular economy has represented one of the most-debated topics in management research. Although the understanding of this industrial paradigm has significantly improved over the last decade, a number of important research questions still remain unanswered. Among them, the design process of business model through which established firms evolve from being linear to circular deserves further investigation. Existing research still falls short to investigate how companies design the dimensions of value creation, value transfer, and value capture of their business models to launch circular products into the market. By leveraging a multiple case study analysis of four companies in the paper and beverage industries that have launched six circular products, the paper examines the process that these companies have followed to face the transition toward a circular business model. The paper contributes to the research field in the intersection between new product development and circular business models, by showing that the process toward a circular business model occurs along three major phases, that is, idea generation, product development, and commercialization. In each phase, companies implement peculiar managerial practices for launching circular products into the market, which typically address all the dimensions of the business model and follows a recurrent path over time.     

Circular business models in high value manufacturing: Five industry cases to bridge theory and practice

The transition to a circular economy (CE) requires companies to evaluate their resource flows, supply chains, and business models and to question the ways in which value is created. In the high value manufacturing (HVM) sector, this evaluation is critical, as HVM enables value in nonconventional forms, beyond profit, including unique production processes, brand recognition, rapid delivery times, and highly customized services. We investigate the role of value, cost, and other factors of influence in the selection of a circular business model (CBM) for HVM. Explored through five case studies using a qualitative evaluation of circularity, we then contribute to the emerging field of CBMs by modifying the CBM canvas that can capture the nontraditional value, traditional value, cost, and other influencing factors enabled via CBM adoption in HVM. Finally, the important role of digital technologies for incentivizing and enabling CBM adoption, is clarified.     

Circular business model implementation: A capability development case study from the manufacturing industry

Circular business models (CBMs) have huge potential to deliver economic, social, and environmental benefits, but CBMs have yet to be implemented widely in industrial settings. One reason is that they are often presented as one-size-fits-all solutions, but this is misplaced because product-specific criteria and company capabilities determine the correct choice and implementation of CBMs. Therefore, the purpose of this paper is to investigate how CBM selection and capability development facilitates the implementation of CBMs. For this purpose, we have adopted a qualitative research approach and undertaken 25 explorative interviews in three large Swedish manufacturing companies. In this paper, a CBM implementation framework consisting of two parts has been developed. The first part addresses the choice of the appropriate CBM based on tactical configurations. The second part provides a capability development path by explicating underlying routines that need to be progressively developed in order to move smoothly to more advanced CBMs.     

Analysing emission intensive firms as regulatory stakeholders: a role for adaptable business strategy

Climate change regulations pose significant challenges to firms that produce large volumes of carbon emissions. Accordingly, firms in the trade‐exposed emission intensive industries are critical regulatory stakeholders. Following the Australian Government's ratification of the Kyoto Protocol in 2007, the proposed installation of an emission trading scheme is one of several business concerns as the government seeks to implement climate change policies and regulations. In this study, we inve stigate some of the major concerns that confront emission intensive businesses, and ask what the critical issues are for firms as a consequence of climate change policy implementation and what this means for their strategies. The study uses a concept mapping and analysis technique to reveal that future emission trading systems and business performance impacts resulting from emission reduction initiatives represent serious strategic concerns to stakeholder firms. Adaptable business strategies offer a potential solution to these perceived concerns and problems. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.     

Supplier evaluation in the context of circular economy: A forward step for resilient business and environment concern

Resource depletion is a concern for the global economy; many think that available resources on the planet will not be able to cater to an ever-growing population. Thus, economies are trying to become circular, leaving behind the linear tradition linear approach. In the circular economy (CE), physical resources and energy are made to loop back into the supply chain (SC) for a more extended period. Proper selection of suppliers is an essential criterion towards proper execution of the CE principle in SC. In this research, we have constructed a framework for evaluating the supplier concerning the CE implementation. Further, this research identifies the criterion and sub-criterion, which are pertinent for evaluating the supplier in CE context. Fuzzy-based ‘Criteria Importance Through Inter-Criteria Correlation (CRITIC)’ method is justifiably applied to determine the aggregated weights of the criteria. Finally, ‘Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS)’ method is used to determine the suppliers' ranking in the Indian automobile industry. Six criteria and 24 sub-criteria are obtained as per recent literature and then inputs from experts. ‘Environment’ criterion came out as the most favourable criterion with a subjective weight of 0.230. The current research is one of the first such attempts to provide criteria for supplier selection in a CE environment. The developed framework would help organisations in implementing CE-based supplier selection. The identified criteria and sub-criteria would provide organisations with means to evaluate suppliers and help suppliers develop an effective and efficient CE based on the SC.     

Epigenetic Economic Dynamics: The evolution of big internet business ecosystems,evidence for patents

The aim of this article is to contribute to literature with new findings from biogenetics that are becoming increasingly important. In particular, we will discuss the new analytic frameworks that may open as a result of the incorporation of epigenetics in evolutionary economic thinking. This new approach is illustrated by studying the evolution of big Internet industry groups such as Apple, Google, Microsoft, Facebook, Amazon and Samsung. With it we shed light on the dynamics of business groups, which we approach as ‘business ecosystems’.     

Navigating value networks to co-create sustainable business models: An actionable staging approach

Sustainable transitions typically require collaboration between multiple actors in the value chain or value network. Recent research has emphasized mapping of stakeholders and values as a starting point for identifying opportunities to realign these relationships, followed by business model experimentation to enable change. However, a simple mapping exercise does not consider the interplay between actors' concerns, business models, and interpretations of sustainability. Pedersen et al. (2022) advocated that aligning concerns is essential to collaborative design and innovation, and requires continuous negotiation between multiple actors. Here, we present a microlevel in-depth case study to examine how alignment across central value chain actors may be facilitated through the staging of numerous negotiations during the innovation process. Drawing on the staging negotiation spaces co-design framework, we provide insight into the content of multiple negotiations concerned with different aspects of sustainability during the development of a more sustainable laundry service system on the Danish island of Bornholm. Our findings illustrate how both value chain actors and a third-party intermediary stage negotiations, and elaborate the framework by attending to the strategic navigational efforts of network alignment through negotiations.     

Proposition of a structural model for business value creation based on circular business models,innovation, and resource recovery in the pet industry

Based on the assumptions of circular economy, resource recovery, and innovation, the aim of this research is to analyze the relationship between innovation constructs, resource recovery practices, Circular Economy Business Models (CEBMs), and value creation in a fast-growing emerging economy. A set of empirical data from 443 companies in the pet industry were used. In terms of methodology, the study was processed using the SPSS software, using Structural Equation Modeling, with manipulation of primary data. CEBMs demand greater engagement, internalization of initiatives, and synergy with the operating ecosystem of the pet industry. Innovation is present but has the potential for expansion through adherence to the innovation ecosystem and its technological package, partnerships, and relationships so that companies can scale up and create value with the support of resource recovery practices. The results of this study can be useful for companies in the pet industry, as it allows the identification of areas and practices that require their attention to improve organizational performance and create value for the business based on initiatives supported by the assumptions of circular economy and sustainability.     

虚拟企业:网络经济下企业创新的新平台

文章论述了在网络经济下的虚拟企业能够突出核心竞争力,能有效加强组织协调,能克服创新本身所具有的不确定性、路径依赖性、不可逆性以及系统集成性特征所引起的创新障碍,为企业创新的成功提供了一个崭新的平台。     

Dynamic business modeling for sustainability: Exploring a system dynamics perspective to develop sustainable business models

In the last decade, business models for sustainability have gained increasing attraction by corporate sustainability scholars with international conferences and scientific journals encouraging the development of the debate on their design, use and innovation processes. Capitalizing on the basic principles, requirements, and methodological limitations found in the literature on sustainability‐oriented business model design, this paper aims to conceptualize a dynamic business modeling for sustainability approach, which combines an adapted sustainable business model canvas and system dynamics modeling. To this end, the paper also illustrates the key operating principles of the proposed approach through an exemplary application to Patagonia's business model. Findings suggest that dynamic business modeling for sustainability may contribute to sustainable business model research and practice by introducing a systemic design tool, which frames environmental, social, and economic drivers of value generation into a dynamic business model causal feedback structure, thus overcoming methodological gaps of the extant business model design tools.     

循环经济理论下的城市固体废物物流系统优化模型

基于循环经济理论的减量化、再使用和再循环原则,分析了城市固体废物物流系统和固体废物处理的物流流程,以运输成本、处理成本、固定成本减去回收收益得到的固体废物处理总成本最低为目标,建立了城市固体废物物流系统设施选址、设施数量和物流流量优化的混合整数规划模型,并对模型中的参数估计问题进行了讨论。     

Sustainable development and circular economy: The role of institutional promotion on circular consumption and market competitiveness from a multistakeholder engagement approach

The transition from a linear economy to a circular economy (CE) is a real challenge to achieve long‐term sustainability. To push CE in the market, institutional promotion could become a key driver to positively impact both circular consumption and the competitiveness of the market. This paper analyzes the influence that soft and hard initiatives have on circular consumption and market competitiveness. Based on a survey of 1,281 respondents from different types of stakeholders, structural equations modeling statistical analysis was run. Results show that soft initiatives support the achievement of both objectives, whereas hard ones only influence greater circular consumption. However, the perception of the different stakeholders considered is very heterogeneous. It is indicative that not all institutional promotion initiatives are effective. Thus, institutions should guide, in an adequate and differentiated manner, their efforts to promote CE and sustainable development depending on the stakeholder they are targeting.     

A new business model for sustainable development: an exploratory study using the theory of constraints in Nordic organizations

The business model in use by many large companies has changed significantly from that of a decade ago and has incorporated environmental and social aspects of performance. However, given these achievements, are there unavoidable inhibitions in the contemporary business model that mean that even exemplar corporations cannot become sustainable? A key issue is consumption without limits, but can businesses do anything about this? The UK Government's Sustainable Development Commission identifies this as an issue. There is a need for an open‐minded consideration of business fundamentals to consider this issue as part of an identification of criteria for a sustainable business model. This is an account of an exploratory study undertaken to identify a new business model for sustainable development. The theory of constraints was adapted to provide the project's methodology that made use of semi‐structured interviews and secondary material. The cloverleaf account of sustainable development was used to structure and analyse sustainable development information. The organizations studied are all located in Nordic countries, since these countries are globally recognized for sustainable development achievements. Conclusions of the study acknowledge that, whilst specific new management tools and approaches of Nordic organizations do help sustainable development, it is the social context in which these organizations function that is a critical factor. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.     

Designing business models in circular economy: A systematic literature review and research agenda

The concept of circular economy is increasingly receiving attention in different domains, including strategic management, operations management, and technology management. It requires companies to design their business model (i.e., the value network, the relationships with the supply chain partners, and the value propositions towards customers) around a new concept of sustainable development that reduces consumption of natural resources and preserves the environment. However, extant research falls short in terms of explaining how companies design their business model according to the circular economy principles. Starting from this premise, the present paper provides a systematic review of the literature on the design of business models in the context of circular economy, aiming to offer an overview of the state of research and outline a promising research agenda.     

Integrating circular business models and development tools in the circular economy transition process: A firm‐level framework

Along with the concept of circular economy growing worldwide, circular business models (CBMs) have been receiving ever greater attention in both the business sector and academia. However, the existing literature on the CBM is scattered and fragmented; this study offers an integrated firm‐level framework to link CBM typologies, the circular economy transition process, and relevant tools for CBM development and clarifies the positioning and roles of those tools in the process. In response to the fragmentation issue, results of this study are presented in three subtopics: (a) CBM typologies and archetypes, (b) transition guidelines, and (c) major analytical tools for CBM research. The roles and functions of CBM typologies and tools were integrated in different stages of the transition process, and the challenges and shortfalls for CBM research in the various stages were identified. This work lays the foundation for future operational studies.