Circular Economy Business Models Research Articles

Evaluation of circular economy business models for SMEs using spherical fuzzy TOPSIS: an application from a developing countries’ perspective

Evaluation of circular economy business models for SMEs using spherical fuzzy TOPSIS: an application from a developing countries’ perspective

Enabling the Circular Economy Transition in Organizations: A Moderated Mediation Model.

The notion of Corporate Environmental Responsibility has been extensively researched in the literature so far, but less is known about how this concept fits into the circular economy paradigm. We performed a moderated mediation analysis in order to identify the mechanism that links corporate environmental responsibility with readiness for change towards a circular economy business model. The findings from 311 respondents show that there is a positive association between corporate environmental responsibility and the readiness for change to a circular model, mediated by perceived circular economy drivers. In addition, perceived circular economy barriers hinder this positive relationship, acting as a buffer. These findings can further contribute to the elaboration of a conceptual framework for embedding circular economy in the corporate social responsibility strategies of organizations.

Investigating Business Potential and Users’ Acceptance of Circular Economy: A Survey and an Evaluation Model

Circular economy is gaining attention in business and society to advance sustainability. This paradigm is particularly relevant for energy-consuming products such as washing machines, where alternatives to linear economy such as pay-per-use and refurbishment are gaining ground. To succeed, these business models should achieve consensus and acceptance among users. However, little attention has been paid to customers’ interest for circular economy business models so far. This paper aims to compare the economic and environmental impacts of pay-per wash and refurbishment business models, while investigating the degree of users’ acceptance and factors influencing it. A survey has been designed to collect users’ data regarding washing machine consumption patterns and acceptance rates of the circular business models. An evaluation model was developed to assess the economic and environmental impacts of pay-per-wash and refurbishment against a traditional linear model, fed with data from 279 Italian households collected through the survey. Finally, logistic regressions were carried out to investigate the influence of different customer, product, and usage factors on the acceptance rates of the two circular business models. Results show that, on average, pay-per-wash business models and washing machine refurbishment can guarantee environmental savings. However, only refurbishment generates economic savings for users. Moreover, only around half of the users’ sample shows a positive degree of acceptance of such alternatives. Respondent age has been found as a significant factor influencing the interest towards a refurbishment model, while the washing machine failures experienced by users and the relevance of the environmental gains achievable influence the acceptance rate of pay-per-wash models. Thus, when offering pay-per-wash schemes, suppliers should emphasize the information on the environmental benefits of this alternative, and that with such models they take over the responsibility and costs for maintenance and repair. On the other hand, providers of refurbished products should target younger consumers, who are less affected by a bias against second-hand goods.

Customer Experience in Circular Economy: Experiential Dimensions among Consumers of Reused and Recycled Clothes

The textile and clothing industry is undergoing a sustainability transition, pushing related businesses to adapt to circular economy (CE) models, such as recycling and reuse. This shift has been extensively studied from industry and business model perspectives, but we lack an understanding of the customer perspective, i.e., how circulated products, such as reused and recycled clothes are experienced among consumers. This understanding is crucial, as customer experience plays a significant role in the adoption of CE products. Therefore, we conducted a qualitative interview study to explore how consumer-customers experience recycled textiles and reused clothes. We used an established experience dimension model and mapped how the five dimensions of customer experience—sensory, affective, behavioral, cognitive, and social—present themselves in the sustainable clothing industry. The data comprised 16 qualitative semi-structured interviews analyzed with a coding framework built on the basis of customer experiences, customer values, and the CE business model literature. The results revealed that diverse sensory (e.g., scent), affective (e.g., pride and shame), behavioral (e.g., developing new decision-making rules), cognitive (e.g., learning and unlearning), and social (e.g., getting feedback from others and manifesting own values) aspects shape how consumers experience reused and recycled clothes. We also compared and analyzed the results of the reuse and redistribute model and the recycle model. Our study contributes to the literature of CE business models and customer experience by providing a structured map of diverse experiential triggers and outcomes from the five experiential dimensions, which together reveal how consumers experience circulated products of the clothing industry. These findings enhance our understanding of customers’ motivation to use recycled and reused products and adoption of CE products.

An integrative literature review of sustainable luxury fashion consumption through a circular economy business model

The goal of this research is to create an integrative literature review on how luxury fashion leaders in mature markets can profitably transition from a linear to a circular business model. Two conceptual models are used to frame this research: Donato et al.'s notion of sustainable luxury consumption and Chiaroni and Urbinati's concept of adopting a circular business strategy. The luxury fashion sector, which is expected to be worth 84.04 billion dollars by 2025, has been unable to implement a circular economy business model to increase sustainable luxury consumption in mature markets. The findings of this integrative literature analysis included suggestions for future study on the shift from a linear to a circular economy business model that benefits the environment, employees, and local/regional communities through sustainable business practices.

Practices and perceptions on ecolabels of Finnish companies with circular economy business models

There is a need to better understand the role of ecolabels in the scope of the Circular Economy transition. The aim of this research was to study the perspectives and practices of ecolabel use among Finnish companies with circular economy business models. The survey-based research targeting 214 companies (response rate 18% = n. 39) showed that ecolabels were not commonly used among the sample of companies. (Human) resource constraints were found in this research to partially explain the low uptake of ecolabels. Therefore, the research opens further questions as to alternative benchmarking and communication tools for the environmental performance of companies that see themselves as frontrunners in the application of circular economy business models.

An integrative literature review of sustainable luxury fashion consumption through a circular economy business model

An integrative literature review of sustainable luxury fashion consumption through a circular economy business model

ЗАСТОСУВАННЯ БІЗНЕС МОДЕЛЕЙ ЕКОНОМІКИ ЗАМКНУТОГО ЦИКЛУ В УКРАЇНСЬКИХ РЕАЛІЯХ

The article defines that one of the alternatives to the linear model of production and consumption, the existence of which provoked the global problems of today, is the concept of the economy of closed cycles or the circular economy, which provides for resource-efficient production and consumption, the preservation of products and their parts in closed production and sales cycles and reduction of the negative consequences of human activity for the environment, which determined the relevance of the article. The essence and main purpose of using closed-loop business models is considered. On the basis of a critical analysis of research on this issue, the signs of such business models are highlighted. The prerequisites for the transition to the economy of closed cycles, as one of the most important mechanisms for overcoming the global problems of humanity, are analyzed. The main areas of the emergence of circular business models are characterized, the development of which will improve the forecast of global economic development (due to the reduction of resource limitations to growth and the creation of additional value in various sectors). The possibilities of using circular business models in modern conditions by Ukrainian companies, depending on the sphere of their activity, are revealed. The existing classifications of circular economy business models are considered.The classification developed by Accenture specialists, under the auspices of the Ellen MacArthur Foundation, focused on the implementation of technologies that contribute to the use of fewer resources for the production of products and / or services, was examined and analyzed in detail; extending the service life of existing products and/or services through repair and restoration; completing the life cycle of products by recycling them. This was achieved using general scientific methods (system analysis, formalization) and methods of economic and statistical analysis (graphical, grouping, classification); A conclusion was made about the need to apply the analyzed techniques to Ukrainian realities. The main elements of the circular production process were systematized. The practical value of the conducted research lies in the possibility of developing a "roadmap" for the transition to a circular economy at different levels of public administration, as well as the strategy of long-term and sustainable development of individual companies.

A Transition to a Circular Economic Environment

The circular economy is progressively a way towards a sustainable society. The shift from linear to circular business models concerns the entrepreneurs to adopt new practices. The purpose of this research is to propose circular business models to make the worlds three of the most wasteful industries food, plastic, and fashion more sustainable. This paper is developed based on an extensive literature review and case studies. The proposed framework analyses the challenges of these three industries and prescribes relevant business models and sustainable practices. The findings in circular economy business models suggest elements of businesses that can be adopted by entrepreneurs in any industry to create a circular activity. This research paper gives the entrepreneurial spirit with business tools to achieve sustainability ambition.

Circular Economy in Marine Waste Management Through Triple-layered Business Model Canvas Approach

Aims: The shift from linear to circular business models is becoming increasingly necessary at the environmental level. There are many ways to make business and the environment an inseparable unit, one of which is by promoting the circular economy business model.
 Methodology: This study focuses on the Triple Layer Business Model Canvas approach to apply the circular economy concept by using the example of a marine waste processing company.
 Results: The results showed that the mapping of the waste processing business model with the TLBMC approach can be described as a whole, the sustainable value of the company in three integrated layers, namely the economic layer, the environmental layer, and the social layer. Despite the limitations resulting from this study but the findings in this study can be adapted to other waste processing companies.

Circular Economy Business Models for the Tanzanian Coffee Sector: A Teaching Case Study

One of the major issues the agri-food supply chains is the considerable production of by-products, which are mostly discarded as wastes and dangerously landfilled. This problem is particularly acute in the coffee supply chain: coffee cultivation generates by-products and in quantities which are potentially dangerous for the environment. A circular economy business model aimed at the recovery of these by-products may represent an interesting solution in terms of environmental, social, and economic sustainability. The goal of this paper was to provide teachers and educators with case material on circular business models that can be used for problem-based learning and case-based learning activities. The proposed case was built to address a real-world problematic situation related to the coffee supply chain. From a theoretical point of view, this study contributes to the literature on circular economy business models by providing a case study developed in the context of a developing country. Furthermore, the research entails practical implications since it shows managers and startuppers how to map a circular business model in all its components under the guidance of a conceptual framework.

Drivers and barriers of circular economy business models: Where we are now, and where we are heading

Literature on the circular economy business model (CEBM) has witnessed a sharp upsurge in recent years. Although scholars have investigated CEBM from several perspectives, including the green business model, waste management, digital technology, the supply chain, and the financial impact of CEBM, critical analysis of the extant literature has not attracted scholarly attention. The current systematic literature review (SLR) on CEBM is an attempt to critically analyse and appraise the prior findings by following robust research protocols. We analysed a pool of 126 studies to identify the thematic research areas, recognise the research gaps and present future research agendas. Subsequently, we classified the research themes, namely the drivers of and barriers to CEBM. The paper thus provides a comprehensive assessment of the current state of the art on the drivers and barriers involved in executing CEBM. By identifying existing research gaps and presenting avenues for future research, the SLR illuminates the nuances of CEBM implementation. Moreover, we propose an actor-network theory-based conceptual framework for CEBM implementation for further investigation. We conclude the study by providing the theoretical and practical implications for those attempting to overcome the barriers and address the challenges involved in CEBM implementation.

Learning through Play: A Serious Game as a Tool to Support Circular Economy Education and Business Model Innovation

Despite the increasing attention on circular economy at the policy level, the implementation of circular business models in companies is still limited. Many companies are put off by the apparent complexity to translate the general concepts of a circular economy into their business practice. This paper presents the development and testing of a simulation board game that aimed to address this gap between theory and business practice. The board game, Risk&RACE, was developed with the purpose of enabling students and business executives to experiment with circular economy business models. The gameplay was tested with 120 users, and cognitive learning outcomes as well as learning dynamics were assessed using a survey. The results of the game workshops demonstrated that the game advanced the participants’ awareness of the need for a circular economy, their understanding of basic circular economy principles, and their insight in opportunities and challenges of circular business models at the company level. When reflecting on the game as a learning tool, players highlighted its engaging and realistic nature and praised how it stimulated strategic thinking. Complementing the gameplay with a debriefing discussion afterwards encouraged players to reflect upon their newly gained insights, deepening their learning experience.

Circular Economy Business Models: a Repertoire of Theoretical Relationships and a Research Agenda

The shift towards a more resource efficient circular economy has become a necessity in the wake of current ecological, economic and social sustainability challenges. Mirroring circular-related developments in policy and business quarters, the circular economy literature is growing as a distinct field of academic enquiry. Yet, the conceptual and theoretical foundations of circular economy thinking need consolidation. Drawing from strategic management, sustainability transitions and systems theories, this article establishes some theoretical anchoring for circular economy business models. It finds that circular business models contribute to an understanding of both competitive advantage and the systemic nature of business. It also develops a future agenda for management research at the interface between the circular economy and business models.

Circular Economy Business Model in the COVID – 19 Pandemic Era in Local Communities

This study aims to map business opportunities with a circular economy model in Karangwidoro Village during the COVID-19 pandemic era. The methods used include the Participatory Rural Appraisal (PRA) Model which emphasizes community participation in all activities starting from planning, implementing and evaluating program activities. Moreover, the Community Development Model, which is an approach that involves the community directly as the subject and object of the implementation of research activities, is also employed. The results of the study show that there is a lack of public awareness of a business opportunity in agriculture, especially in the use of agricultural waste, but with the application of a circular economy business model, these problems can become new opportunities to increase the economic value of the local community.

Circular Economy Business Models: The Complementarities with Sharing Economy and Eco-Innovations Investments

The transition from the linear economy to the circular economy exhibits some criticalities that can be solved through the identification of factors pushing and pulling the transition itself. By adopting a public good perspective in analysing the main features of the circular business models, this study underlines how the sharing economy business models are well integrated and complementary to some features of the circular economy, representing a strong pulling factor. Other loops of the circular economy need an explicit push factor, individuated in a strong impulse to eco-efficiency, to be reached through consistent incentives to invest in R&D for eco-innovations. Seven case studies are investigated in their aims, feasibility and implementation to support the interpretative framework.

Antecedents of absorptive capacity in the development of circular economy business models of small and medium enterprises

AbstractMost firms, especially small and medium enterprises (SMEs), find it difficult to integrate circular economy strategies within their business models. Moreover, there is a lack of research on approaches for the successful implementation of circular economies in SMEs in the field of manufacturing. To fill this gap, we investigate the antecedents of absorptive capacity in successful circular economy business cases using a qualitative multiple‐case study. Focusing on the horticultural sector, we interviewed six Italian SMEs using NVivo 12 for the analysis. The data were then classified into first‐order and second‐order categories and then sorted into absorptive capacity dimensions. Our results highlight the significant contribution provided by absorptive capacities to the circular economy in SMEs. We highlighted three antecedents for each absorptive capacity dimension and explored their key concepts. Our study contributes to the academic literature on the links between absorptive capacity and corporate sustainability by providing insights into the role of acquisition, assimilation, transformation and exploitation capabilities in the successful implementation of circular economy practices.

Sustainable entrepreneurship education for circular economy: emerging perspectives in Europe

PurposeThe paper aims to contribute to the Circular Economy debate from the Entrepreneurship Education perspective. Despite scholars' growing interest in both these research streams, scarce consideration is given to the comprehension of their mutual implications and meaning.Design/methodology/approachThe paper is based on a cross-case analysis. It compares 16 higher education programmes launched by Universities in Europe aimed to create competences and skills for Circular Economy in students with different profiles. The analysis provides a critical view of the emerging trends for the entrepreneurship education skills and competencies needed for the emerging circular entrepreneurship paradigm.FindingsThe paper discusses the main trends of Entrepreneurship Education focused on Circular Economy debate at the European level: rationale and learning objectives (why); contents (what), target students and stakeholders (who) and the learning processes (how). Four thematic areas are identified as common patterns: circular economy business model, green supply chain management, technology entrepreneurship and innovation and public policies and institutional frameworks.Research limitations/implicationsThe paper sheds new light on a still under-researched area, suggesting several implications and avenues for future research in Circular Economy and Entrepreneurship Education. Limitations regard the need to analyse education programmes from a larger geographical area, to take into consideration interesting experiences in the rest of the world and to also collect quantitative data.Practical implicationsPractical implications arise for the development of learning initiatives for the Circular Economy: learning objectives and new thematic areas focused on circular, sustainable and innovative rethinking of the process for creating value in the incumbent companies; exploring meaning and benefits of collaborative approaches and participation in the circular economy innovation ecosystem and developing advanced models for soft-skills development in terms of leadership, motivational and creative skills.Originality/valueThe debate on CE can also be rooted in the paradigm of entrepreneurship as a core process to advance knowledge on valuable and sustainable innovation.

Are food supply chains taking advantage of the circular economy? A research agenda on tackling food waste based on Industry 4.0 technologies

This article proposes a means of exploring the use of circular economy (CE) business models to deal with losses and waste in food supply chains. First, the current state-of-the-art application of CE in the food waste area was identified through a systematic literature review. The main findings concerning the current debate around this topic were: (a) the Regenerate and Loop business models are the most studied models in analyzing methods of reuse and recycling of food waste through biological cycles; (b) focal companies and customers are the most often investigated tiers of supply chains; and (c) the investigation of CE and food waste has so far focussed on how to efficiently manage the waste already generated by the system, instead of how to avoid waste generation. Second, in terms of managerial contributions, based on the findings from the systematic literature review, this article proposes an expansion of the application of CE business models to deal with food losses and waste, considering the role of the retail tier, the use of Industry 4.0 technologies and the shift away from the waste reuse approach towards reducing waste generation using CE business models, such as Optimize and Share. Additionally, in terms of academic contributions, this article presents a comprehensive agenda for future research and extends the body of knowledge with regard to the synergy between CE and Industry 4.0 by integrating these two topics with the issue of food waste and loss, a sustainable development target.

Building a Circular Economy Model for Managing Exploitation of Household Used Devices on the Example of Washing Machine Driven by DC Motor Along with Components

Abstract In the article, the authors describe, using the example of a selected class of technical means, their concept of replacing the “classical” linear management (exploitation) model with a circular economy (CE) model. An example of an object for which the authors plan to test the feasibility of the concept presented above is a household washing machine driven by a DC motor. The description of this object included in the article considers its complexity and multiplicity of assemblies, sub-assemblies, and elements. The DC electric motor driving the washing machine was considered the most important from the point of view of the created model, especially in terms of the possibility of maintenance and repair. For such an engine, the article presents the maintenance and disposal model as elements of the concept of building a ‘circular’ business model. The authors assumed that the formal basis for such a model would be the so-called circular model. The methodology and plan of the research carried out at Super Asia washing machine company in Pakistan were introduced, and the research results were shown. With the use of these results, an attempt was made to assess the requirements that the application of the CE business model places on manufacturers of a selected class of devices, both in their manufacture, repair, sharing and dematerialization. The concept of further research is described at the end of the article.