Circular Economy Business Model Practices: A Multi-Tiered Supply Chain Perspective

Abstract

The growing awareness of circular economy (CE) and circular economy business model (CEBM) has pushed scholars to consider its organizational role in the field of supply chain management. Implementing CEBMs requires a paradigm shift when moving from a traditional supply chain to a sustainable supply chain. Although studies have unearthed important aspects of CE applications, they have limited suggestions about CE’s applicability, more specifically, how it works in a multi-tiered supply chain. Hence, this study aims to address this glaring gap in literature about firms’ rationale and involved complexities of implementing CEBM in a multi-tier and multi-industry supply chain using qualitative multi-case approach. Data were collected primarily by interviewing officers (i.e., sustainability managers, plant managers, purchasing managers and supply chain managers) of the participating firms. Findings suggest that firms’ practice CEBMs as “core business” and “part of sub-systems”. Further, the rationale and complexities of CEBM practices vary based on their positions in the supply chain.