Abstract
The Circular Economy is gaining traction in academia, industry, and policy making as an alternative model that minimises resource depletion, waste, and emissions. To implement the concept on the organisational level, business models are an important leverage. A body of literature has emerged investigating the notion of circular business model and circular business model innovation, however, there is considerable lack of clarity about their theoretical conceptualisation. To address this and systematise the state-of-the-art of the nascent field of circular business models and circular business model innovation, we have reviewed this literature, employing systematic database searches and cross-reference snowballing. Our contributions to conceptual clarity are: (1) an overview of the history of the concepts of circular business model and circular business model innovation, (2) an overview and synthesis of definitions of circular business model and circular business model innovation, and (3) an overview and synthesis of conceptual frameworks for circular business model and circular business model innovation.
Highlights
The circular business model notion is based on two underlying concepts: the circular economy and business model innovation
From a value proposition perspective, take-back is a key element of the value proposition, which is enabled by collaborations in the value chain and effective reverse manufacturing processes
We conducted this review to increase the conceptual clarity around the notions of circular business model and circular business model innovation
Summary
The circular business model notion is based on two underlying concepts: the circular economy and business model innovation. The concept of the circular economy is influenced by Boulding’s (1966) work He argued that for the economy and the environment to coexist in equilibrium, the Earth should be seen as a desirable closed-loop system (or closed spaceship economy in his words) with limited assimilative capacity. Stahel and Reday (1976) introduced certain features of a circular economy, with a focus on industrial economics. They conceptualised a loop economy to describe industrial strategies for waste prevention, regional job creation, resource efficiency, and dematerialisation of the industrial economy. They conceptualised a loop economy to describe industrial strategies for waste prevention, regional job creation, resource efficiency, and dematerialisation of the industrial economy. Stahel (1982) emphasised that selling utilisation
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