Integrative conceptualization of products and business models for the circular economy: A systematic literature review

Abstract

The increasing demand for sustainability is challenging manufacturing companies and endangers the viability of their current business models. Their historically linear value creation model needs to be restructured to remain viable and to be conform with the requirements of sustainability. As a result, the circular economy has emerged as a promising economic model. For implementing a circular economy, it is essential to adapt the existing product design and business model towards more circularity. However, the knowledge regarding interdependencies between the circular product design (CPD) and circular business models (CBM) remains vague in theory and practice, hence leading to untapped potentials in practice. The aim of this paper is a framework that allows for an integrative conceptualization of CPD and CBM for the circular economy. A systematic literature review was conducted to identify concrete challenges, barriers, drivers, and potentials for CPD and CBM. By consolidating the results, a framework is derived that characterizes the specific areas of influence for CPD and CBM. Through this, companies receive a deeper understanding about the functionality of a circular economy. Based on the outlined challenges, companies can effectively plan the implementation of the circular economy.