Towards a value stream perspective of circular business models

Abstract

Circular business models could minimise material input into and leakage out of the economic system and play an essential role in utilising the resources and capabilities of the private sector for the transition to more sustainable economic development. Despite the growing prominence of the Circular Business Model concept in research and practice, there is still considerable uncertainty on how to implement these new circular business models in existing global supply chains. Equivalent haziness also lies on the value streams it creates. To address this gap, a comprehensive literature review on “circular economy” and “business models” was conducted by employing content analysis with detailed code trees. The results led to several findings. First, we identified the key conceptual dimensions of circular business models, their theoretical approaches, drives and barriers, sustainability trade-offs amongst triple bottom-line perspectives and types, and value streams within circular business models and their ecosystems. Then, we designed conceptual mind maps to analyse the relationships between categories, illustrating the positive and negative interactions between key stakeholders. Finally, we proposed a circular business model framework that brings the novelty of connecting value streams within circular business models and their ecosystems. It allows the assessment of the positive and negative interactions between the circular business model building blocks in a systematic way.