A research model for circular business models–Antecedents, moderators, and outcomes

Abstract

• The circular business model concept can learn from adjacent literature streams such as business model innovation and ecosystems to hypothesize the antecedents, moderators, and outcomes. • The framework for circular business models can lend ideas from institutional theory, dynamic capabilities, and managerial cognition to better understand antecedents and moderators of circular business models. • The concept of circular business models has been researched heavily recently. However, the concept still fails to achieve a paradigmatic status according to the paradigmatic criteria defined by Fry and Smith (1978). The concept of circular business models, defined as firm activities to create and capture value in a circular manner by, for example, extending or continuously reusing product materials, has received increasing attention in management research. The emerging literature, however, lacks theoretical underpinning and empirical findings are not cumulative. Therefore, this article analyzes existing and related research in much detail and presents a comprehensive research model on antecedents, moderators, and outcomes of circular business models. The theories and related research streams considered for the research framework include Institutional Theory, Managerial Cognition, Dynamic Capabilities, Corporate Social Responsibility, Business Model Innovation, and Ecosystems. Gaps within and across the respective research streams concerning circular business models are revealed, and relevant avenues for future research are suggested.