Archetypes of Business Models for Circular Economy: A Classification Approach and Value Perspective

Abstract

AbstractIn the circular economy, companies design their business models based on the principles of the circular economy and try to identify new opportunities for value creation. Research on the circular economy business model (CEBM) is in its infancy: the terminologies used in the classification and the meanings and relationships between circular practices are unclear. In addition, very few studies examine the value analysis in each business model archetype of a circular economy. This study aims to categorize archetypes of business models for a circular economy and present the value analysis of each archetype from the literature. With the help of an integrated framework by ( Accenture.: Circular advantage innovative business models technologies value growth, 2014) and Van Renswoude (2015), we categorize 23 archetypes of business models for the circular economy into seven categories and analyze their value based on three dimensions value proposition, value creation, and delivery and value capture. Our results show that the product-service system models, product life extension models, and end-of-life resource recovery models are the most commonly discussed ones in the circular economy literature. Only a few articles discuss how value is created, delivered, and captured in each circular business model. Therefore, it is necessary to explore further the value delivery and value capture dimensions. Future studies could investigate the value analysis of business models for a circular economy from sector-specific perspectives.KeywordsCircular economyCircular business modelsCircular economy business modelsValue propositionValue creationValue deliveryValue capture