Designing the Business Models for Circular Economy—Towards the Conceptual Framework

Mateusz Lewandowski

doi:10.3390/su8010043

Abstract

Switching from the current linear model of economy to a circular one has recently attracted increased attention from major global companies e.g., Google, Unilever, Renault, and policymakers attending the World Economic Forum. The reasons for this are the huge financial, social and environmental benefits. However, the global shift from one model of economy to another also concerns smaller companies on a micro-level. Thus, comprehensive knowledge on designing circular business models is needed to stimulate and foster implementation of the circular economy. Existing business models for the circular economy have limited transferability and there is no comprehensive framework supporting every kind of company in designing a circular business model. This study employs a literature review to identify and classify the circular economy characteristics according to a business model structure. The investigation in the eight sub-domains of research on circular business models was used to redefine the components of the business model canvas in the context of the circular economy. Two new components—the take-back system and adoption factors—have been identified, thereby leading to the conceptualization of an extended framework for the circular business model canvas. Additionally, the triple fit challenge has been recognized as an enabler of the transition towards a circular business model. Some directions for further research have been outlined, as well.

Highlights

Switching from the current linear model of economy to a circular one would bring savings of hundreds of billions US dollars to the EU alone, and significantly reduce the negative impact on the natural environment [1,2]
This approach was inspired by Barquet et al [10], who used a similar one for the characteristics of product-service systems (PSS)
Business model structure was defined on the basis of the business model canvas (BMC) developed by Osterwalder and Pigneur [8]

Summary

Introduction

Switching from the current linear model of economy to a circular one would bring savings of hundreds of billions US dollars to the EU alone, and significantly reduce the negative impact on the natural environment [1,2]. This is why the circular economy (CE) has attracted increased attention as one of the most powerful and most recent moves towards sustainability [3,4]. Comprehensive knowledge on designing circular business models is needed to stimulate and foster implementation of the circular economy on a micro-level. Previous research instead has taken the following approaches: building on a business model canvas (BMC)

Methods

Results

Conclusion