TOWARDS CRYSTALLIZING CIRCULAR BUSINESS MODELS: A CRITICAL ANALYSIS OF LITERATURE

Abstract

Circular Economy (CE) can be promoted and supported by the creation of new and innovative business models which embed CE principles into organisations’ value chains. This paper provides a review of approaches to the circular business model (CBM). We conducted a literature review, including content analysis, and examined publications (51 papers) on circular business models published in English in peerreviewed journals. Our objective was to provide an overview and systematize the stateof-the-art in CE-oriented business model approaches. The following research questions were posed in relation to the objective: Which sub-processes and components are included in the Circular Business Models (CBM)? Which CBM archetypes have already been established? Which strategies and other factors support the creation/ transformation of the CBM? The results of the studies were presented in five areas encompassing the following: 1) development (including the methodologies of development and transformation), value proposition, creation and delivery, 2) CBM archetypes, 3) circular strategies, 4) the determinants of development and transformation of business models for CE. The paper contributes to the improved understanding of circular business models. It consolidates related research by offering an overarching conceptual framework. It also points to the directions of future research.