Insights and dynamics of circular business model in developing countries' context: The empirical analysis of the returnable glass bottles process

Abstract

AbstractDespite the growing understanding that circular business models (CBMs) play a pivotal role in facilitating the transition from a linear to a circular economy, there is a lack of relevant literature on how CBMs can be implemented in businesses in developing countries. This study addresses this significant gap in the literature by revealing the insights and dynamics of the implementation of a CBM in a typical developing economy—Nigeria. A notable business model adopted by breweries and beverage companies in Nigeria—a returnable glass bottle process—was investigated through an in‐depth exploration of six companies in a qualitative case study that involves collecting data through interviews, exploratory field observation, and documented evidence (literature). The study generated empirical‐based evidence on how CBM can be implemented in a business value chain where formal and informal actors co‐exist and interact. It also discloses several barriers and enablers associated with CBM implementation in the context of developing economies. Collaboration, social inclusiveness, waste management, durable product design, and cost reductions are some of the enablers identified in the study. The key barriers are largely external and conspicuously linked to the socio‐economic disadvantages peculiar to developing economies such as the absence of effective legislature, lack of infrastructure, lack of technological innovation, unavailability of finance, and the emergence of large retail stores that operate on a disruptive business model. Finally, the current research provides practical suggestions and recommendations for the appropriate designing and transitioning of CBMs in developing countries' context.