From circular business models to circular business ecosystems

The circular economy aims to minimize resource inputs and waste and emission outputs of the economy and its organizational subsystems. This can benefit both financial and sustainability performance of companies. To analyze industrial implementation of the concept, the prevalent unit of analysis on the firm level is currently the circular business model. Our investigation of nine Swedish biogas companies and one branch organization indicates a range of conceptual shortcomings that challenges this approach. Our comparative case analysis points towards circular ecosystems being a more appropriate concept to describe the high level of coordination between different stakeholders necessary to implement circular systems. This increases the suitability to analyze, plan, and communicate circular economy systems on an organizational level, especially if value chain integration is low. An ecosystem perspective can thus support innovation and entrepreneurship in the context of the circular economy.     

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.     

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.     

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.     

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.     

特许经营商业模式和盈利模式研究

文章认为特许经营这种商业运作模式有初级和高级发展阶段,分别对应着依靠有形商品赚钱的"初级盈利模式"和依靠无形资产赚钱的"高级盈利模式"这两种不同的盈利模式。     

Circular business model evolution: Stakeholder matters for a self-sufficient ecosystem

Food waste is a key issue in the circular economy. A circular ecosystem results from the contributions of various stakeholders; however, the claims and value propositions of these stakeholders can differ, hampering long-term sustainability of the ecosystem. This study analyses the case of RiCibo, a circular ecosystem based in Genoa, Italy. RiCibo collects surplus food and redistributes it to the needy in the local community. The study examines the conditions that facilitated RiCibo’s evolution from a simple project to a circular self-sufficient ecosystem characterised by a co-designed circular business model with a broad range of stakeholders. The results show that sharing people, infrastructure and knowledge, together with mutual trust among stakeholders, are the preconditions of a circular ecosystem. Long-term continuity depends on additional tools that enhance financial self-sufficiency, namely, participative governance, a co-designed circular business model, accountability, frequent engagement, local actions and the development of advocacy power.     

Microfoundations of dynamic capabilities: Insights from circular economy business cases

Circular economy is a key strategy to achieve corporate sustainability. However, so far, most firms are unable to translate the concept of circular economy into their corporate strategies, business models, and operations. Some scholars have argued that firms need to develop new (and dynamic) capabilities for circular economy implementation. Yet there is a little discussion on how firms can develop such capabilities. Notably, there is a paucity of research on specific skills, processes, and organizational activities (microfoundations of dynamic capabilities) that may facilitate circular economy implementation. To address this knowledge gap, using a multiple‐case studies approach, we explore microfoundations of dynamic capabilities in successful circular economy business cases. Our findings indicate that dynamic capabilities positively contribute to circular economy implementation. Our case studies show that case firms identified circular economy opportunities by using four microfoundations of sensing capability. Further, case firms acted on the identified opportunities by using simultaneously three microfoundations of seizing capability and four microfoundations of reconfiguring capability. This paper contributes to the literature on the relations between dynamic capabilities and corporate sustainability by providing insights on how sensing, seizing, and reconfiguring dynamic capabilities act in successful operationalization of circular economy strategies.     

The transition from linear economy to circular economy for sustainability among SMEs: A study on prospects,impediments, and prerequisites

The circular economy (CE) is a more holistic approach that advocates towards extracting the value from the waste and reaching sustainability goals. The objective of the present study is to highlight the prospects, impediments, and prerequisites while transiting from the linear economy (LE) to CE of SMEs. The study gathers information on prospects, impediments, and prerequisites for the transition of LE to a CE from recent studies . A semi-structured interview questionnaire was prepared, and a survey was conducted on representatives of six SMEs . Further, six caselets were developed to understand the prospects, impediments, and prerequisites based on the findings of the interview and previous information gained from existing literature . The major prospects favoring transition from LE to CE found in the study are significance of 3R (reduce and reuse and recycling) approach, CE leads to competitive advantage, recycling attracts consumers in few cases, CE helps in achieving sustainability goals and reuse of materials are significant in resource conservation. There are certain impediments found such as issues associated with awareness, recyclability issues, financial challenges, and weak management vision of SMEs towards CE implementation. Other resource-based impediments were found related to trained employees, lack of experience. Whereas, consumer acceptability is also a major concern towards implementing CE. The findings of the study suggest major prerequisites towards CE implementations such as strong “management will,” innovation, technology up-gradation, training to employees, motivation, and appropriate guidelines. Government pressure to implement CE cannot be an effective step towards the transition of LE to CE.     

网络经济下企业管理的发展趋势

网络经济作为一种全新的经济形态,正在深刻地影响着世界经济的进程。文章分析了网络经济下企业管理的核心内容,并对网络经济时代的企业组织形式,企业管理的特点进行了探讨。     

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.     

Circular economy and sustainability: The role of organizational behaviour in the transition journey

Implementing circular economy (CE) requires complex and dynamic changes in technical and behavioural aspects. Few studies spend efforts to understand the organizational behavioural side of CE transition. Thus, this study proposes a theoretical framework that addresses the requirements for the transition towards CE from the organizational perspective. We conducted a systematic review aiming to identify the relations between CE and organizational culture. As a result, we developed a theoretical framework composed of five building blocks (mindsets, values, behaviours, capabilities and competences) that guide the transition towards a CE-oriented culture aiming to achieve sustainability in business. We also identified several gaps for future researches. We concluded that the framework could enrich the literature discussion in the field and be used by practitioners for the identification of paths to implement CE from the organizational culture perspective. In addition, the use of this framework could lead to the achievement of the sustainable development.     

Close the loop: Evidence on the implementation of the circular economy from the Italian fashion industry

Fashion is widely considered as one of the most polluting and destructive industries to the environment and is a resource-intensive industry in which opportunities to reduce environmental impacts abound. By relying on an exploratory approach, this paper features an investigation into the circular economy (CE) practices of four purposefully selected Italian fashion companies. The study endorses the overlooked perspective of the product lifecycle (vis-à-vis the business model perspective), consistent with the key principles of the CE, to provide a comprehensive picture of CE practices implemented. This study engages with the current debate on the relationship between the concepts of sustainability and CE, supporting the idea that there is a beneficial relation between the two. The analysis shows the emergence of categories of CE-related practices as well as CE implementation challenges. The study also provides granular insights into the nature of these challenges that hinder the implementation of CE and demonstrates how they can be turned into sources of competitive advantage. Drawing on this emblematic evidence, we develop a set of theoretical and managerial implications.     

Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models

Business model innovation has seen a recent surge in academic research and business practice. Changes to business models are recognized as a fundamental approach to realize innovations for sustainability. However, little is known about the successful adoption of sustainable business models (SBMs). The purpose of this paper is to develop a unified theoretical perspective for understanding business model innovations that lead to better organizational economic, environmental and social performance. The paper examines bodies of literature on business model innovation, sustainability innovation, networks theory, stakeholder theory and product–service systems. We develop five propositions that support the creation of SBMs in a unified perspective, which lays a foundation to support organizations in investigating and experimenting with alternative new business models. This article contributes to the emerging field of SBMs, which embed economic, environmental and social flows of value that are created, delivered and captured in a value network. It highlights gaps for addressing the challenges of business model innovation for sustainability and suggests avenues for future research. © 2017 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd     

众包的产生、发展以及构建众包商业模式应遵循的路径

本文总结了众包的概念,对众包与外包之间的的关系进行了区分,分析了众包的产生与发展趋势、众包的特征,研究了众包对传统企业模式的革命性影响,针对众包商业模式在我国发展进程中存在的问题,对众包商业模式的流程进行了逻辑分析,并就我国企业构建众包商业模式应遵循的路径提出了若干建议。     

Sustainable entrepreneurship,innovation, and business models: Integrative framework and propositions for future research

This article introduces the business models for sustainability innovation (BMfSI) framework to study how business models mediate between sustainability innovations and business cases for sustainability. The BMfSI framework integrates two major perspectives (implicitly) found in the sustainable business model literature. The first is the agency perspective. It takes into consideration that some form of agency is needed, that is, “someone” who takes decisions and acts. Sustainable entrepreneurs are discussed as those agents who align their new or existing business models with sustainability innovations in order to be successful in business and to create value with and for stakeholders. The second perspective is the systems perspective, which acknowledges that business models are always embedded within sociotechnical contexts through which, for example, public policies, private financing, or stakeholder interests influence whether and how business models can be developed. The agency and systems perspectives are integrated in the so‐called business model mediation space. This theoretical notion embraces the decisions and activities pursued by sustainable entrepreneurs as they align their business models with sustainability innovations on the one hand and the influence of environmental contingencies, barriers, and stakeholders from the sociotechnical context on the other hand. The paper concludes with propositions for future research derived from the BMfSI framework.     

Innovation and the circular economy: A systematic literature review

The circular economy emerged as an alternative model to the linear system, which now appears to be reaching its physical limitations. To transition to a circular economy, companies must not only be aware of but also engage in more sustainable practices. For such a transition, companies must rethink and innovate their business models and the ways they propose value to their clients while simultaneously considering environmental and social facets. This systematic literature review sought to map out from the company perspective the key topics interrelated with innovation and the circular economy, describing the internal and external factors to consider in such transition processes. Key lines of research were identified, and suggestions for future research and for facilitating movement toward a circular economy are provided. This work contributes to deepening the literature by identifying the priority areas concerning the circular economy and encouraging future research that meets international standards of excellence.     

How can firms access bank finance for circular business model innovation?

Access to bank finance has emerged as a key challenge for firms engaged in circular business model innovation (circular BMI), both in practice and in the academic literature. Through interviews, focus groups and archival documents, we document the experience of firms accessing finance for circular BMI and assess bank willingness to lend to firms that engage in circular BMI. Our findings offer potential strategies for firms who look for external (bank) finance to realise circular BMI. Using a case study-based theory-refining approach, we identify three core strategies that firms can use to obtain bank finance for circular BMI. First, firms can signal future cash flow expectations by aiming to secure customer contracts and preorders. Second, relationship building with banks, suppliers and customers improves the banks' risk perception of firms. Third, firms can design standardised, long-lasting circular assets that can serve as bank collateral, especially once secondary markets develop, overcoming the difficulty of lending based on innovative, firm-specific assets.     

Accentuating the interconnection between business sustainability and organizational performance in the context of the circular economy: The moderating role of organizational competitiveness

Sustainability development has gained significant importance in the modern business environment. The primary objective is to conduct an explanatory and quantitative study of the impacts of the social, economic, and environmental dimensions on organizational performance, considering the moderating role of organizational competitiveness. Data were collected from Chinese, Italian, and Romanian small and medium enterprises (SMEs). The questionnaires were distributed by applying simple random sampling techniques. The study sample size consists of 320 SME employees. Hierarchical regression was used to investigate the moderating impacts of organizational competitiveness on the relationships of the social, economic, and environmental dimensions and organizational performance. The regression analysis shows a positive relationship between the study variables. Small and medium-sized enterprises are focusing more on sustainable business practices.