Circular Economy, Organizations, and Business Models: A Literature Review

Abstract

The circular economy is opposed to a linear model of mass production and mass consumption and is promoted as a model that could offer a wide array of opportunities for organizations, even though turning its principles into reality poses a number of challenges. Despite its potential, research on how the circular economy concept translates into organizational strategies, business models, and managerial practice is still limited. Indeed, organizations and management scholarship do not seem to have incorporated it into a comprehensive research agenda. This study attempts to give a meaningful contribution in that direction. By systematically reviewing literature on circular economy from 2010 to 2019, this research examines how this emerging concept is translated into organizational strategies, business models, and managerial practice and the roles played by business organizations in its implementation. Moreover, we examine how opportunities and challenges are addressed in the adoption of circular strategies and business models. Based on our findings, the paper concludes with a proposed agenda for research that might contribute to advancing knowledge on the circular economy concept and its organizational, managerial, and policy implications.