Circular Business Models Research Articles

Heterogeneities in willingness to pay for circular affordable housing: insight from young users

Circular affordable housing (CAH) is crucial to advancing sustainability, but the lack of empirical evidence on users’ active attitudes towards circularity limits its applicability. To fill this gap, this study utilizes discrete choice experiments to thoroughly explore young users’ preferences and willingness to pay for a circular business model (CBM) in affordable housing by considering Dutch and Taiwanese cultural contexts. The analyses highlight the four key attributes that an acceptable CBM for young users in affordable housing should possess: the incorporation of a certain proportion of reused materials, provision of green facilities, availability of furniture services, and effective energy-saving and waste management. Furthermore, young users are willing to allocate 2.5–5% of their monthly income to support the implementation of CBM, which is beneficial for the adoption of CBM in ongoing affordable housing projects worldwide. The attribute preferences of young users in Taiwan and the Netherlands differ due to varying socio-economic characteristics, sustainability attitudes, and distinct cultural patterns within both societies. Consequently, this paper offers recommendations for governments to expedite the development of CAH.

Hierarchy and cause–effect relationship of barriers to circular business models in food systems: a Fuzzy-DEMATEL analysis in the Berlin-Brandenburg area in Germany

ABSTRACT Food systems face significant environmental challenges, necessitating a shift towards sustainability and resource efficiency. Implementing circular economy principles and adopting new business models can significantly contribute to more sustainable food systems. These approaches address major issues in the linear economic model, such as excessive food loss and waste, resource depletion, and market volatility. However, due to various barriers, adopting new circular food systems confronts sluggish progress. This study identifies the hierarchical structure and cause-and-effect relationships of these barriers using the example of selected food systems in Berlin-Brandenburg, Germany. Employing the Fuzzy-DEMATEL analysis approach, this research identifies four primary causal barriers and four effect barriers classified across market development, finance, technological availability, knowledge management, as well as institutional domains. Furthermore, the study ranks these barriers based on their significance. It reveals that the top barriers are poor product design and waste management infrastructure, insufficient quantity and quality of material flow, and a lack of collaboration in the supply chain. In addition, weak policies, along with their inadequate evaluation and monitoring, act as the most influential causal barriers. These findings hold significant implications for practitioners and policymakers striving to promote the transition to circular food systems through innovative business models. Practitioners are advised to prioritize collaborations with different stakeholders to ensure proper waste management, by-product valorization, and resource efficiency. Concurrently, policymakers should enact supportive policies and effective governance structures based on the needs of the businesses and its stakeholders.

Circular Economy: Research in the Maritime Domain

The maritime domain is a very broad domain encompassing ship design, construction, transportation, export–import, port management, energy, ocean, and waterways management. The assumption that the marine industry is less flexible for a transition from linear economy to circular economy (CE) is being challenged. A ship is a factory/city in motion, and therefore, CE principles may be applied to a ship. CE principles can be applied to ports, energy, and waterways management. Successful implementation of CE requires a comprehensive mapping of business models, projects, products, and services; identification of all stakeholders; and using biomimicry in manufacturing. CE can help in the regeneration and restoration of natural capital. The circular business models can help in increasing revenue, reducing costs, and saving the environment. CE can be extended to include reimagining, realigning, reworking, and reaching out to different players in the maritime domain. The marine industry faces the challenges of decarbonization and end-of-life vessel management.

Circular business model innovation and cognitive framing: Addressing the “missing micro”

Circular business model innovation and cognitive framing: Addressing the “missing micro”

Implementing circular business models for the second‐life battery of electric vehicles: Challenges and enablers from an ecosystem perspective

AbstractThis study adopts an ecosystem perspective to provide a detailed understanding of key challenges and enablers for implementing circular business models for electric vehicle battery second life. Although academia and practitioners believe electric vehicle (EV) batteries' second life is a potential solution, the commercial implementations are still far away. A crucial step toward such implementations is to identify the key challenges and enablers of circular business models. The criticality of this step is even more evident when approaching second life business models from an ecosystem perspective, where multiple stakeholders are involved in the creation, capture, and delivery of value. This research conducts an explorative study with 15 companies in the EV battery ecosystem and identifies nine categories of key challenges and seven categories of key enablers. Based on priority dimensions (short/long term) and the responsible entity (firm/ecosystem related), the study proposes a guiding framework to address challenges and enablers. The study contributes to the circular business model innovation and ecosystems literature related to the EV battery second life.

In Search of Sustainability Gains from the Complementarity Between Value Creation, Value Proposition and Value Capture Elements of Circular Business Models

In Search of Sustainability Gains from the Complementarity Between Value Creation, Value Proposition and Value Capture Elements of Circular Business Models

Circular Economy Business Models, Value Creation and Humane Entrepreneurship: A Micro-Sized and Social Enterprise Perspective

AbstractThe circular economy is currently championed across different quarters as a potential solution to contemporary and multiple sustainability challenges. Academically, the concept has witnessed a substantial increase in scholars’ interest. Yet the locus of current literature is mainly conceptual, and there is a dearth of contributions from business and management studies. Drawing on the circular business models and the nascent humane entrepreneurship literature, and an exemplary, micro-sized social enterprise, we find that circular business models generate multiple forms of social value beyond the creation of job opportunities only, and that they are characterised by a humane entrepreneurship orientation. As a result, we contribute to the limited literature on circular economy implementation and to the emerging literature at the intersection between entrepreneurship and the circular economy.

The circular business models of third-party loop operators: An activity-based view on performing activities internally or externally

Third-party loop operators play an important role in the circular economy (CE) by closing the resource loops for other firms. These third-party loop operators face a key business model decision: whether to perform CE activities in-house or externally. We adopt the activity-based view (ABV) as a theoretical lens to divide the CE into five activities: collection, sorting, pre-processing, transformation, and integration. By analysing 79 third-party loop operators using Qualitative Comparative Analysis (QCA), we found that these activities are performed in two bundles. When third-party loop operators perform the collection activity in-house, they are likely to perform the sorting activity in-house as well. The remaining activities (pre-processing, transformation, and integration) are also performed together, either in-house or externally. Furthermore, we identify some boundary conditions that affect why these activity bundles are performed in-house or externally. When supply concentration is high, third-party loop operators tend to perform collection and sorting in-house because access to highly concentrated sources can result in a competitive advantage. When the uncertainty about waste condition is low, third-party loop operators can develop efficient pre-processing, transformation, and integration activities in-house. Activity gaps emerge when no actor in the market can carry out the activity. In this case, third-party loop operators fill the gap by carrying out the activity internally.

Circular Strategies as Practice: Connecting Circular Business Models to Circular Ecosystems

Circular Strategies as Practice: Connecting Circular Business Models to Circular Ecosystems

DISCLOSURE ANALYSIS OF 7R♲ SUSTAINABILITY MATERIAL INDICATORS IN THE CIRCULAR FASHION INDUSTRY

The fashion industry is one of the most polluting industries in the world, which makes it a candidate for attention towards what concerns the circular economy, along with other sustainability-related practices. This industry has great potential of disposing itself from the unsustainable linear business models that it adopted for a long period to more circular business models, which promotes closing the loop. In order to find out the circularity performance of the selected companies towards the disclosure of circular economy-related information in their corporate sustainability reports, this study transformed the quantitative material circularity performance indicators proposed by Rossi et. al (2020) into qualitative indicators, which makes it more inclusive for the analyzed companies, because not all of them report and disclose information respecting the same guidelines. Upon transforming the quantitative indicators into qualitative ones, the circularity performance was measured through a score-based method, which offers an insight perspective on data that makes possible a comparative analysis and also an interpretation of the extent of circular information disclosure. Seven circular material indicators were selected and analyzed for fifteen companies representing the European fashion industry. Results revealed that the higher average disclosure score is on the recyclability of materials and resources while the poor disclosed information in the sustainability reports is regarding remanufacture and refurbishment.

Enhancing Circular Economy Practices in the Furniture Industry through Circular Design Strategies

The furniture industry represents a substantial segment of Europe’s economy, with the European Union producing approximately 25% of the world’s furniture. This sector is currently transitioning towards a circular economy. This study aims to thoroughly examine the circular initiatives undertaken by European furniture companies, emphasising the role of design in fostering innovative solutions. By employing a multiple case study methodology, the research demonstrates that existing circular solutions predominantly focus on materials and products, with significant adoption of circular design strategies. The majority of furniture companies are implementing these strategies to enhance resource efficiency and prolong product lifespans. Additionally, some companies are developing complementary service systems to improve product performance and longevity further. However, only a few have successfully implemented circular business models alongside circular product design strategies. This study also highlights that increasing user engagement and adopting a systemic perspective that includes various stakeholders in creating mutually beneficial solutions are areas that are still underdeveloped. Finally, we propose a framework to effectively guide furniture companies in implementing design strategies from a systemic perspective, aiming to generate comprehensive circular solutions within the European furniture sector.

Integrating the circular business model into the packaging industry

Integrating the circular business model into the packaging industry

The critical role of procurement in the emergence of circular business models: Insights from multiple cases of Vietnamese manufacturers

AbstractWhile recent literature acknowledges the role of procurement in circular business models (CBM), a comprehensive exploration of its potential contribution remains scarce. This study delves into the under‐explored role of procurement in advancing CBMs within organizations. Employing a multiple case research design focused on four Vietnamese manufacturers, the research unveils procurement's distinctive contributions to CBM implementation. Emphasis is placed on supporting recyclability, reusability, waste reduction, and ethical standards aligned with competitive strategies. The study introduces a circular procurement framework, demonstrating its potential to drive CBM adoption. Theoretical contributions involve applying CE and CBM theories to procurement, identifying its role in CBM organization, uncovering barriers, and linking them to organizational context and financial considerations. In terms of practical implications, the research provides managerial guidance, emphasizing the pivotal link between procurement and CBM success, offering actionable insights for effectively navigating challenges, and fostering a culture of sustainable circularity within manufacturing businesses.

Scaling up a circular business model for remanufacturing: A case study of a sustainable value creation strategy for the white goods industry

AbstractBecause of the ever‐increasing pressure on producers to adopt environmentally responsible industrial practices, remanufacturing has emerged as a key strategy to address the challenges of resource conservation and waste reduction. In this paper, we address a conspicuous research gap regarding innovative and large‐scale circular solutions in the form of remanufacturing systems. We investigate how the private sector can build widespread remanufacturing networks to handle waste from the appliance industry. Starting from a successful case study of a leading Italian distributor of spare parts, our analysis expands their existing business model and inductively develops an original framework for regional remanufacturing. Our resulting model encompasses a centralised hub specialised in high‐tech data management and supply‐chain logistics, coupled with two tiers of remanufacturing labs and repairers, diffusing triple‐bottom‐line benefits throughout the local territory. We discuss the generalisability of such a centralised/decentralised model and propose avenues for the policy support of systemic circular innovations.

Responsibility fixes: patching up circular economy value chains

Abstract Recycled plastics value chains are being collaboratively constructed amid calls for greater responsibility of the corporates driving today’s plastic waste crisis. The resulting ‘responsibility fix’ bolts new arrangements onto linear production processes, offering a mechanism to push linear processes towards circularity, while starting to patch up some of the social and economic injustices associated with waste-picking work within contemporary systems of capitalist production and consumption. This research draws upon semi-structured interviews to trace international collaborations within recycled plastics value chains to identify how new, low-disruption, circular business models are being built.

The influence of financial and non‐financial factors on the adopting intentions of businesses towards circular business models: Evidence from Vietnam

AbstractThis study investigates the factors influencing intentions to adopt circular business models (CBMs) among businesses in Vietnam, a manufacturing hub in the region. To conduct the investigation, we developed a conceptual framework based on the behavioral theory of the firm and the resource‐based view, categorizing factors into two dimensions: financial and non‐financial. Through empirical analysis involving a survey of 291 businesses and employing partial least squares structural equation modeling (PLS‐SEM), we found that financial factors, including capital availability, expected economic benefits, and cost management competence, exert a stronger influence on the adoption of CBMs compared to non‐financial factors, such as stakeholder pressure, technology competence, and innovation competence. Furthermore, while several businesses are actively engaging in activities related to CBMs, managerial commitment towards full CBM adoption remains a prospective goal rather than an immediately actionable present reality. This study contributes in both theoretical and practical terms by addressing a critical research gap and quantifying the impact of financial and non‐financial factors on CBM adoption. Our findings offer valuable insights for businesses and policymakers, facilitating the promotion of circular economy and sustainable development.

Dynamics of Business Models in Circular Economy: Shifting Challenges in Pilot Projects

AbstractThis study investigates the dynamics of circular business models (CBMs) through a multiple case study of 12 pilot projects funded by the German Federal Ministry of Education and Research between 2019 and 2022. The aim of this study was to draw practical conclusions for CBM pilot projects and public funding tenders, as well as to reveal theoretical insights into the motivation, perceptions of challenges, and potentials regarding CBMs and their shifts over time. Focused on remanufacturing and product-service systems (PSS), the study reveals significant shifts in motivation and perceived challenges before and after the pilot projects. Post-pilot, financial considerations emerged as a primary motivator for CBM adoption, alongside market pull factors and resource availability. However, challenges such as cost-related issues, supply chain complexities, and internal realignment hurdles persisted. Conversely, the perception of market-related challenges had decreased after the pilots, suggesting a growing readiness and adaptability of the market to CBMs. Similarly, experience-related challenges saw a decline, indicating an improvement in knowledge and capabilities within consortia over time. Moreover, the study examines shifts in perceived potential, revealing heterogeneous outcomes across different types of CBMs. While some projects identified new possibilities for value chain cooperation and transparency, others expressed skepticism about further potential, particularly in PSS-focused pilots. This study contributes to the growing body of literature on CBMs by providing empirical insights into the dynamics of circular economy (CE) pilot projects and their impact on organizational learning.

Перспективы развития водного хозяйства Ростовской области в системе отношений «вода – энергия – продовольствие»

In modern socio-economic and environmental challenges, the sustainable development of regional water management systems must be carried out within the framework of a circular paradigm. However, not all circular approaches are sustainable. Therefore, implementing circular business models should be carried out on the principles of industrial symbiosis. The possibilities of achieving the synergistic effects of the circular economy increase significantly by implementing the water-energy-food relationship. The article substantiates the possibilities and prospects for the development of water management in the Rostov region based on intersectoral interactions between the water, energy, and food sectors of the economy. The prerequisites for the implementation of industrial symbiosis relations in the Rostov region were identified. Possible options for implementing industrial symbiosis relations, which showed good results, are proposed. The characteristics of the main processes implemented by the hydraulic system of the region to achieve sustainable development goals are given. The conclusions about the need for state institutional and infrastructural support for the development of the circular economy are drawn. The novelty of the results is that they go beyond the framework of the circular economy and represent a more holistic vision of the prospects for the development of regional water management. The conclusions can be used in regional management when adopting and developing a strategy for the development of regional water management.

CAN ARTIFICIAL INTELLIGENCE ACCELERATE THE TRANSITION TO A CIRCULAR ECONOMY?

The world’s current model of economic development is unsustainable. It promotes the inappropriate use of limited natural resources, encourages consumption and waste, causing serious damage to the environment and generating large amounts of waste. The circular economy, an economic model in which resources are recycled and reused as much as possible by following a circular path rather than a linear path during consumption, has been gaining popularity around the world in recent years. Artificial intelligence (AI), one of the most important developments of our time, can also play an important role in the realisation of the circular economy. AI can complement and extend the skills of humans. It helps people learn faster, deal with complexities more effectively, and better understand the abundance of data. AI can facilitate new circular business models within the circular economy and help design sustainable and robust products. The aim of this study is to seek answers to questions such as how artificial intelligence contributes to the transition to a circular economy and whether artificial intelligence can accelerate the transition to a circular economy. While seeking answers to these questions, we argue that artificial intelligence has significant potential in the transition to a circular economy and will play an important role in this transition.

GLOBALIZATION DYNAMICS TO FOSTER GROWTH AND DEVELOPMENT WITHIN CIRCULAR ECONOMY: A CASE STUDY OF ALBANIA

The linear economy of today's society conflicts with many environmental, social, and economic challenges. As a result, policymakers and researchers prioritize the implementation of the circular economy concept. The European Union supports a smooth transition to a circular economy through the Circular Economy Strategy, the European Green Deal (carbon neutrality by 2050), and the United Nations' Sustainable Development Goals (SDGs). Replacing traditional business models with circular business models necessitates a shift in technology features that incorporate R strategies (refuse, reduce, recycle, etc.). This study looks into how globalization dynamics affect the transition to a circular economy, as well as the implications for growth and development. Albania, as a transitioning economy in Southeast Europe, provides an important backdrop for understanding the problems and opportunities given by globalization when embracing circular economic principles.