The Alignment of Circular Economy Business Models (CEBM) with the Strategies of Small and Micro Enterprises Operating in Malta

Abstract

This paper sets out preliminary findings for research investigating, from a dynamic viewpoint, how small and micro enterprises operating in the small island state of Malta align their business strategies with Circular Economy Business Models (CEBM). The aim is to establish an analytical framework evaluating their process of alignment. These businesses are a major economic driver for the island. In 2021, out of the 55,950 registered businesses in Malta, 52,674 were micro-firms and 2,686 were small businesses (NSO 2021). The study applies grounded theory methodology, using Corbin and Strausss conditional matrix (2015) and Charmazs constructivist approach (2006). To understand their implementation of circular practices, interpretative, in-depth interviews were carried out with five owners-managers in the service, logistics, manufacturing, retail, and wholesale sectors. The research postulates an early conceptual model showing how a set of contextual conditions influences the alignment of CEBM with the strategies of businesses in Malta. Factors influencing CEBM adoption include owner-managers personal traits, organisational factors, and external factors. The findings presented are part of a larger study mapping common alignment paths pursued by firms in the circular economic shift. It offers recommendations to owners-managers, policymakers, and academic researchers. Few studies have yet focused on the alignment between CEBM and the business strategy of firms in small island states. Generally, studies concentrate on larger businesses in bigger countries. This research study adds significantly to existing knowledge and academic literature.