Circular Economy and Business Transformation in European Furniture Industry

Abstract

In today’s global landscape, industries must develop solutions to address environmental challenges, particularly emphasizing sustainable practices. The furniture industry, a significant contributor to resource depletion and environmental impact, requires immediate attention in this regard. This research focuses on exploring and establishing a framework for Circular Economy (CE) Business Models specifically designed for the furniture sector. By bridging existing research gaps, this study aims to support the adoption of sustainable Business Models aligning with EU Sustainable Development Goals (SDGs). The focus of this research is on the Sustainable Manufacturing and Eco Design Business Models. Given the limited literature available, this study seeks to enrich general understanding and provide practical insights to companies aiming to adopt more sustainable Business Models. To achieve this objective, a thorough literature review has been conducted. After initial literature review, we identified nine crucial value sources that served as the building blocks for a variable modeling framework designed for furniture industry Business Models. Transitioning from the literature review to an empirical analysis, secondary data used for quantitative desk analysis. As a result of this research, two archetypes have been identified specifically for furniture companies. These archetypes offer practical pathways for businesses aiming to transition towards sustainability. This paper contributes by providing a practical roadmap for furniture businesses to embrace CBMs. By offering validated archetypes and actionable insights, it aims to empower companies to align their strategies with sustainable practices.