Abstract
The circular economy operates as an umbrella concept for attempts to find sustainable alternatives to linear ‘take-make-dispose’ production and consumption systems. Making a circular economy transformation has sparked interest in business models as means to decouple value creation and the use of virgin raw materials. However, so far, little attention has been given to the differentiating capacities of business models to enhance circularity. Using Finnish biogas production as a case study, this paper shows how business models operating within a single economic domain and within uniform institutional conditions differ in terms of how they organise material circuits. Four business models are differentiated based on what wastes and side-flows they enable to be recovered, and how. Because the business models co-evolve, their potentials are analysed in relation to the business model ecosystem. An emerging business model competes with the dominating model. The newcomer would help to generate more closed material loops, but the existing institutional landscape fails to provide support for its emerging modes of value creation and value capture. Two other business models qualify as niche solutions coexisting with the other models. Knowing the business model ecosystem opens up prospects for policy revisions that can foster a more circular economy.
Highlights
Business models—as templates through which firms ‘do business’ by creating and capturing value in their network (Zott et al, 2011)—are gaining increasing attention due to their potential to link institutional change to the reorganisation of economic activities (Diaz et al, 2019; Levanen et al, 2018; Provance et al, 2011)
Four biogas business models the analytical framework is used to categorise the business models of Finnish biogas production based on the material circuits they generate and maintain
This paper has introduced a new framework to study business models for secondary resource recovery as co-existing and potentially competing modes of material organisation
Summary
Business models—as templates through which firms ‘do business’ by creating and capturing value in their network (Zott et al, 2011)—are gaining increasing attention due to their potential to link institutional change to the reorganisation of economic activities (Diaz et al, 2019; Levanen et al, 2018; Provance et al, 2011). The circular economy operates as an umbrella concept (Blomsma, 2018) for attempts to find sustainable alternatives to linear ‘take-makedispose’ production and consumption systems. It is often described in terms of different strategies for retaining the value of products and materials, including extending product lifetime, product reuse, repairing or refurbishing, material recycling and energy recovery. Recent literature has started to analyse business models as part of a business model ecosystem This concept refers to the composition of, and relationships between, business models operating within shared insti tutional conditions (Bocken et al, 2020; Bocken et al, 2019; Boons and Bocken, 2018)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
