Abstract
This study aimed to analyze the relationship between circular business model innovation and business performance in Brazilian industrial chemical companies. This is a quantitative study carried out through a survey with Brazilian industrial companies. Based on a homogeneity analysis (Homals), the results showed that the high degree of innovation in business models from the adoption of circular economy (CE) strategies in the analyzed companies confirms that a significant change leads to superior performance, especially in market, production, economic and financial, and social.
Highlights
Products are becoming more resource-efficient, increasing consumption levels and the linear nature of the economic system have notably increased resource use and waste, leading to environmental degradation
When analyzing the relationship between the degree of innovation in the circular business model and business performance in the Brazilian chemical industries, it was evident that a more proactive stance in their business model toward the circular economy (CE) is related to better market and productive performance, economic and financial, and social
This confirms that a significant shift from linear economic logic to a more innovative logic such as CE is associated with superior business performance
Summary
Products are becoming more resource-efficient, increasing consumption levels and the linear nature of the economic system have notably increased resource use and waste, leading to environmental degradation. The CE envisions achieving a more effective and resource-efficient economic system by intentionally narrowing, slowing, and closing material and energy flows (Ellen Macarthur Foundation, 2015; Bocken et al, 2016). The adoption of practices that lead to CE requires significant changes and investments to modify existing linear models in planning, production, and management of the supply chain (Fusion, 2014). This implies a shift from material-intensive business models to service-based business models and the improvement of more collaborative partnerships (Fonseca et al, 2018)
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