Influencing factors driving collaboration in circular business models

Abstract

ABSTRACT The transition from a linear to a Circular Economy is considered a revolutionary step toward a greener economy. Ensuring a successful transition requires radical changes in our current siloed approach to applying circular business models. Such models aim to mitigate negative environmental impact whilst fostering growth and prosperity. This research focuses on three models (‘Circular Supply’, ‘Resource Recovery’ and ‘Product-Life-Extension’). It aims to explore their collaborative aspects and influencing factors in the transition process towards circular ecosystems. By applying the theoretical lens of Social Capital Theory, with its characteristics of bonding, linking and bridging, findings revealed a snapshot of current circular practices in various industry sectors. In addition, the influencing factors for the specific Circular Business Models were identified based on the seven categories of: (1) Awareness/Social/Community; (2) Circular Workplace Environment; (3) Circular Material; (4) Customer and Market demand; and (5) Business and political standards, (6) Perception and individual standards/expertise, and (7) Communication skills. Finally, the findings were used to offer practical insights for organizations beginning their circular journey, with the categories being mapped alongside the CBMs.