Circular Economy Business Models Research Articles

Circular Economy and Business Transformation in European Furniture Industry

In today’s global landscape, industries must develop solutions to address environmental challenges, particularly emphasizing sustainable practices. The furniture industry, a significant contributor to resource depletion and environmental impact, requires immediate attention in this regard. This research focuses on exploring and establishing a framework for Circular Economy (CE) Business Models specifically designed for the furniture sector. By bridging existing research gaps, this study aims to support the adoption of sustainable Business Models aligning with EU Sustainable Development Goals (SDGs). The focus of this research is on the Sustainable Manufacturing and Eco Design Business Models. Given the limited literature available, this study seeks to enrich general understanding and provide practical insights to companies aiming to adopt more sustainable Business Models. To achieve this objective, a thorough literature review has been conducted. After initial literature review, we identified nine crucial value sources that served as the building blocks for a variable modeling framework designed for furniture industry Business Models. Transitioning from the literature review to an empirical analysis, secondary data used for quantitative desk analysis. As a result of this research, two archetypes have been identified specifically for furniture companies. These archetypes offer practical pathways for businesses aiming to transition towards sustainability. This paper contributes by providing a practical roadmap for furniture businesses to embrace CBMs. By offering validated archetypes and actionable insights, it aims to empower companies to align their strategies with sustainable practices.

Are digital servitization-based Circular Economy business models sustainable? A systemic what-if simulation model

Manufacturing companies are struggling with the implementation of Circular Economy, especially due to the uncertainty regarding its potential sustainability benefits. In particular, and despite digital servitization is advocated by several studies as a way to achieve environmental gains, circular business models based on digital servitization are not always sustainable due to burden shifting and unexpected consequences which are difficult to assess before implementation. This is particularly relevant for the Electrical and Electronics Equipment industry, which suffers structural weaknesses such as the dependance on critical raw materials and an increasing waste generation. However, literature lacks models and tools able to address the complexity inherent in the systemic micro-macro perspective envisioned by Circular Economy, while studies that quantitatively assess the sustainability impacts and trade-offs of digital servitization-based circular scenarios are limited. This article aims to develop a better understanding of how the sustainability impacts of circular and servitized scenarios can be assessed and quantified at the economic, environmental, and social level, adopting a systemic perspective through the development of a what-if simulation model. The model is implemented in a spreadsheet tool and applied to a digital servitization-based Circular Economy scenario inspired by the case of a company offering long-lasting, high-efficient washing machines as-a-service. Results show that digital servitization can actually lead to a win-win-win situation with net positive effects to the environment, the society, and the economy. This result is based on the joint application of product design for digitalization and life extension, pay-per-use business models, and product reuse. These results are robust within a significant range of key parameters values. Practitioners and policymakers may use the model to support the evaluation of different circular and servitized scenarios before implementation.

A Cluster-Based Bibliometric Analysis of the Emerging Technological Landscape in Logistics using Vosviewer

Emerging technology presents itself as a futuristic solution since its early development stage in the industry. Concurrently, the industry has proposed framework implementations as well as efforts to integrate emerging technologies in the supply chain, particularly in logistics. This study aimed to unveil the applicability of either supply chain or logistic functions in the present industry. This study used Publish and Perish to mine academic document data based on the keyword ‘Logistic’ and ‘Emerging technology’ in the past five years. Furthermore, the retrieved data were compiled and processed as a bibliographical map to visualize relevant clusters as the bottom-line discussion for this study. Five clusters had different items/keywords associated with them, excluding clusters three and four which were discussed in tandem. Cluster one revealed that AI and blockchain could support manufacturers for a circular economy business model through reverse logistics operations in the pandemic. Cluster two was a bigger picture discussing enhancement efficiency and risk reduction in the supply chain using AI, blockchain, and IoT. Clusters three and four had overlapping keywords specifying the discussion of blockchain implementation for the Agri-industry in China. Finally, cluster five reaffirmed the conceptualism of emerging technology integration for transportation from other clusters. Despite a unanimous agreement on the potential use of emerging technologies, challenges were also found, such as complex implementation, uncertain investment, and technology immaturity accompany. Thus, as the implication of this research, it reveals the capabilities and issues of the implementation of emerging technologies within multiple aspects of logistics and supply chain.

Mapping out focus for circular economy business models (CEBMs) research in construction sector studies – a bibliometric approach

Purpose The circular economy business models (CEBMs) provide ways for firms operating in the construction industry to move from a linear to a circular approach. Thus, this study aims to explore CEBM research within the construction sector to show the focus area of studies, highlighting new areas that require attention. Design/methodology/approach This study adopted a bibliometric approach, using the Scopus database as the data source. The keywords used for paper extraction from the database were “circular economy business” OR “circular business” AND “model” OR “models” AND “construction industry” OR “building industry”. The VOSviewer software was then used to prepare a co-occurrence and co-authorship map based on the bibliographic data gathered. Findings The study’s findings reveal five research clusters in the construction industry. These clusters include circular construction intelligence, modular business modelling, eco-construction, sustainable construction economics and smart energy-efficient buildings. The two most cited scholars had two publications each, while the top journals are the Journal of Cleaner Production and Sustainable Production and Consumption. This study concludes that there is a need for research within the construction sector to focus on CEBMs’ archetypes and frameworks. This will enable a smooth transition from linear to circular business models in the sector. Research limitations/implications The information was gathered from a single database, Scopus; hence, using other databases, including Web of Science, Google Scholar and Dimensions, might produce more articles for examination and, consequently, different findings on the subject under investigation. Practical implications These findings would assist researchers in considering the areas mentioned, which are yet to receive attention, and, by extension, enhance economic development while maintaining environmental sustainability. Originality/value This paper made a significant contribution to the body of knowledge by identifying scholars and platforms that have been instrumental in advancing CEBM research and highlighting new areas that require attention in the construction sector.

Barriers to circular economy: Insights from a small electric vehicle battery manufacturer

Small and medium enterprises (SMEs) play a crucial role in the transition to circular economy (CE). The CE transition for lithium-ion batteries (LIBs) with a focus on manufacturing SMEs underpins this research, which explores the potential barriers to implementing a CE business model. Barriers to CE transition are a growing research area, and this study makes two key contributions to the literature. First, we explore the interactions between different barriers to CE transition. Second, we do this through an in-depth case study of a small enterprise at the center of the electrification and mobility ecosystem that specializes in high-voltage batteries for special vehicles. Our results show that barriers related to the regulatory framework, market structure, actors and their attitudes, structure, technology, and tools hinder CE transition. Moreover, the interactions between these barriers keep the system unbalanced by reinforcing loops and making CE transition more challenging.

Circular Economy Business Model in the Construction Industry: A Systematic Review

The construction business environment is becoming competitive and intense, and Business Models (BMs) are receiving considerable attention as potential sources of sustainable survival and growth. Converse to the Linear Economy (LE) model that industry follows, the Circular Economy (CE) model has the potential to create a sustainable construction industry while also creating a sustainable business environment in construction organisations. Nevertheless, in traditional BMs, value is often concentrated on the financial value for the stakeholders; in the Circular Economy Business Model (CEBM), value is seen more broadly by considering a comprehensive range of value chain partners, the environment, and society. Hence, implementing the CE in the construction industry requires reforms in each value chain. Thus, the aim of this paper is to develop a conceptual model for construction organisations’ adoption of CEBM for their organisations. To accomplish this aim, the objectives of this paper are twofold: (i) to define the concept of CEBM and (ii) to map a conceptual Circular Economy Business Model Canvas (CEBMC) that is applicable in the construction organisational context. This research adopted a systematic document review, including a content analysis of selected papers. This study contributes significantly by proposing a CEBMC where construction organisations can successfully transform their businesses from linear to circular environments.

Scaling circular economy business models: A capability perspective

AbstractIn a context of growing environmental challenges, circular economy (CE) business models appear necessary for business to contribute positively to the ecological transition. While platform business models have been identified as a new and promising model in CE, we still lack a fine‐grained understanding of the critical capabilities involved in developing and scaling them. To fill this gap, we build on a single case study of Phenix, a French‐based fast‐growing start‐up in the food industry, tackling the issue of food waste. We identify three core managerial capabilities involved in the successful scaling of Phenix's business model. In addition to ecosystem orchestration capabilities, we identify two types of ambidextrous capabilities – forms of ambidexterity operating both at the organizational and at the institutional level. Our analysis highlights the importance of considering these capabilities in a bundle as they collectively contribute to the performance and scaling potential of the business model. We also call for an increased consideration of the role of institutional factors in shaping opportunities to design and scale profitable business models.

Circular Economy Business Model in Integrated Waste Management to Encourage Self-reliance in Jongbiru Village

The circular economy has been expected to be an effort to build a competitive and sustainable society. This study aims to develop a circular economy-based business model for waste management in Jongbiru Village, Kediri Regency. The research method used is descriptive-qualitative by developing a sustainable business model innovation framework. The model used is a development of the Business Model Canvas (BMC) by involving business aspects of the environment. The research data were collected through observation and interviews at the location of the research object. The results showed that the waste disposal site (TPS) in Jongbiru Village had implemented a circular economy business with the 3R principle (reduce, reuse, and recycle), which was managed independently. However, there are shortcomings in long-term planning and efforts related to the role of the community. Moreover, the findings in the field also show the potential that needs to be optimized through supporting facilities and social capital. The implications of this research encourage the role of stakeholders in planning the long-term development of business projects with a community engagement approach.
 Keywords: village self-reliance, circular economy, social capital, business model canvas

The role of supply chain integration in the risk management of circular economy: a multiple case study in the furniture industry

Supply Chain Integration (SCI) has attracted increasing attention in Supply Chain Risk Management (SCRM) literature as it could be a very useful tool for risk mitigation. At the same time, companies in several sectors are experiencing a transition towards more circular and sustainable business models, which poses new challenges and risks for firms. Despite the relevance of integrative practices in supply chains to deal with risks and uncertainties, evidence about the role of SCI for dealing with risks of Circular Economy (CE) is still lacking. The focus of this paper is on the causal link between SCI and SCRM in a circular economy context, with the main aim of investigating the effects of SCI and SCRM practices combined with CE on company performance. For this research, a multiple case-study approach was adopted involving several companies at different levels in the furniture industry. The results are expected to guide companies in their transition towards CE business models, being able to better deal with CE risks through integrative practices and obtaining an overall increase of efficiency, particularly in costs, due to the optimization and green use of waste materials.

Framework for a circular economy business enabled by digital platforms: A review

For decoupling economic growth and environmental impact, current business models must transition toward a circular economy (CE). Currently, CE business models enabled by digital platforms (DPs) are gaining attention; although existing studies provide insights for improving business practices, they do not systematize the knowledge on the composition of such businesses. In this study, a typology of DP-enabled CE businesses is proposed based on a literature review of 64 studies. A framework based on existing typologies was designed and revised based on the review, by integrating 125 practices; four patterns of DP-enabled CE businesses were identified: (A) product circulation, (B) virtualized and intensified usage, (C) efficient and effective recycling, and (D) visualization and collaboration.

A review of circular economy models and success factors on public-private partnership infrastructure development

PurposeThe application of circular economy (CE) has received wide coverage in the built environment, including public-private partnership (PPP) infrastructure projects, in recent times. However, current studies and practical implementation of CE are largely associated with construction demolition, waste and recycling management. Few studies exist on circular models and success factors of public infrastructures developed within the PPP contracts. Thus, the main objective of this article is to identify the models and key success factors associated with CE implementation in PPP infrastructure projects.Design/methodology/approachA systematic review of the literature was undertaken in this study using forty-two (42) peer-reviewed journal articles from Scopus, Web of Science, Google Scholar and PubMed.FindingsThe results show that environmental factors, sustainable economic growth, effective stakeholder management, sufficient funding, utilization of low-carbon materials, effective supply chain and procurement strategies facilitate the implementation of CE in PPP infrastructure projects. Key CE business models are centered around the extension of project life cycle value, circular inputs and recycling and reuse of projects.Research limitations/implicationsAlthough the study presents relevant findings and gaps for further investigations, it has a limited sample size of 42 papers, which is expected to increase as CE gain more prominence in PPP infrastructure management in future.Practical implicationsThe findings are relevant for decision-making by PPP practitioners to attain the social, economic and environmental benefits of transitioning to circular infrastructure management.Originality/valueThis study contributes to articulating the key models and measures toward sustainable CE in public infrastructure development.

CIRCULAR ECONOMY AND INDUSTRY 4.0 INTO INDUSTRIAL ENGINEERING COURSES

Objective: This article presents a theoretical study of how the concepts of the Circular Economy (CE) and Industry 4.0 (i4.0) can be incorporated and introduced into industrial engineering courses and how they can help the implementation of circular economy business models. Design/methodology/approach: A theoretical analysis was conducted on a set of articles identified through a search based on the combination of keywords 'circular economy,' 'CE,' 'industrial engineering,' 'industrial engineer,' 'i4.0,' and 'Industry 4.0.' Two databases, Scopus and Web of Science, were consulted initially. A total of 29 articles were selected and utilized for the subsequent analysis. Following a comprehensive review of these 29 articles, we sought to determine how the concepts of the circular economy and i4.0 can be integrated into industrial engineering courses and their potential contributions to the implementation of circular economy business models. Results: The paper provides an overview of how the concepts of the CE and i4.0 can be incorporated into the curriculum of undergraduate industrial engineering courses, utilizing an interdisciplinary and cross-cutting approach. Furthermore, it was possible to verify that there is a strong and feasible relationship between the concepts of the circular economy and Industry 4.0. For the effective implementation of these concepts, there is a necessity to train professionals and the use of digital technologies in favor of the circular economy. Originality/value: The paper brings as contribution, the discussion about the importance of incorporating the concept of circular economy and i4.0 into the courses of future engineers, who work mainly in the management of production processes and management of resources. This is a theoretical study, not an empirical one, and perhaps this is the main limitation of the research. However, despite being theoretical, it brings as a practical contribution an important discussion about the need to train professionals, even in their undergraduate training, and the use of digital technologies in favor of the circular economy.

The pathway towards circular economy: Measuring circular advantage of eco‐innovations

AbstractEco‐Innovation (EI) emerges as an enabler of Circular Economy (CE). A shift to the CE is a powerful opportunity for companies to create significant financial and economic value for business and society: the so‐called “circular advantage”. Companies have a crucial role as accelerators of the CE transition, although the identification and exploitation of CE opportunities that derive from trasformative EI being essential. With the aim to develop a multidimensional and multi‐actor approach to innovation in CE the present paper proposes an integrated Multi‐Criteria Decision‐Making (MCDM) method based on fuzzy Analytic Hierarchy Process (AHP) and Interval‐Valued Triangular Fuzzy Numbers Additive Ratio ASsessment (IVTFN‐ARAS). The proposed method is conceived as a tool to evaluate the ability of Eco‐Innovative solutions to trigger company adoption of CE business models, the exploitation of disruptive technologies, and the enforcement of dynamic capabilities, which are all recognized as drivers of CE advantage. An illustrative application to a set of EU‐funded Eco‐Innovative projects is presented to clarify how the method works in practice. Discussion and suggestions for future research offer guidance to use the method as a policy‐making instrument.

Циркулярна економіка: особливості та перспективи впровадження в Україні в умовах війни

The circular economy is a prerequisite for the new industrial revolution, because it contributes to achieving maximum economic efficiency in industry and reducing the negative impact on the environment. Its implementation involves a set of measures aimed at the sustainable development of enterprises, the country and society. Introducing the concept of circular economy is an important and necessary step for the development of our country, its integration into the European Union and post-war recovery. The purpose of the study is to identify problems on the path of reorientation of Ukrainian enterprises to the principles of circularity and sustainable development and to develop methods for their rapid adaptation, in particular, taking into account the consequences of European integration and full-scale war. The goals of the research: analysis of the current state of waste management in Ukraine, clarification of the essence and key principles of circularity and sustainable development, identification of the main strategies for the implementation of the circular economy, analysis of the peculiarities of the implementation of circular business models in Ukraine, taking into account the experience of the EU, development of recommendations for rapid adaptation circular business models in conditions of war. The peculiarities of waste management in Ukraine, in particular in the conditions of war, the readiness of companies and resource provision for the introduction of new circular business models are analyzed. The advantages and weaknesses of the implementation of circular principles, the opportunities that open up to enterprises, the positive impact on the economic, social, technological spheres, etc. are characterized. Before the full-scale invasion into Ukraine, most of the factors of the external environment were generally favorable for the implementation of circular economy business models by Ukrainian enterprises: accelerated accession to the EU, commitment to Ukrainian business in the world market, attraction of foreign investments, development of innovative technologies in Ukraine, gradual change in the culture of consumption , increasing consumer trust in "green" brands, increasing the level of social responsibility of enterprises. The amount of waste in Ukraine as a result of military operations as of June 2023 was 12 million tons (excluding temporarily occupied territories): destruction of administrative buildings, private houses, agricultural lands, etc. At the same time, it was stated that the pre-war methods of waste management, which were already ineffective, cannot be used in principle today. Therefore, now more than ever, it is important to promptly and effectively eliminate its consequences, which, on the other hand, is also a potential for the development of the circular economy and the post-war reconstruction of Ukraine.

Scaling up the transition: The role of corporate governance mechanisms in promoting circular economy strategies

This study examines the role of corporate governance (CG) mechanisms in promoting Circular Economy (CE) strategies among non-financial listed companies in manufacturing industries, which is still a relatively unexplored topic in the CE literature. Our findings indicate that the presence of stakeholder engagement practices, sustainability reporting, and environment management teams have a direct impact on the adoption of CE strategies, while the presence of a CSR committee, adherence to the United Nations' Global Compact, and executives' compensation linked to environmental, social, and corporate governance performance do not have a direct effect but support CE strategies through other mechanisms. Overall, this study provides valuable insights for policymakers and managers as it shows that CG mechanisms can be used to promote the adoption of CE business models, thus contributing to climate risk mitigation objectives.

The lifecycle impact and value capture of circular business models in the built environment

Circular economy (CE) has been of utmost interest in the industry and research community in the preceding years. However, CE is still a nascent research field in the built environment context. As technological advances within CE are slowing, the incorporation of business models into the concept is deemed important to achieve the necessary transition. Circular business models within the built environment should take a holistic perspective and a lifecycle optimization approach. The research aim is twofold, firstly, we aim to contribute to the assessment of impacts of CE business models. Secondly, we aim to establish how real estate development organizations can optimize value capture from adaptive reuse projects. We engage in an in-depth mixed methods case study assessing and comparing two adaptation scopes of a former textile factory to offices. The minor scope includes basic measures to bring the building up to standard, whilst the major scope includes the same, with the addition of space efficiency measures, extended building services, onsite energy production and various circular activities. We find that the major scope consequently captures more of the identified value propositions of the organization than the minor scope. We conclude that more circular activities do not necessarily lead to better environmental performance, however, may lead to higher profit and social gain. The study contributes to existing knowledge of impact assessments, and highlights the complexity of balancing environmental, social and economic impact in the built environment context. The assessment framework may be used by real estate developers prior to investments decisions.

Designing a Sustainable Business Models for Green Transition of SEZ in Campania—Towards the Conceptual Framework

Launched by the Region of Campania in 2017, the special economic zone (SEZ) in Campania is being developed as a consequence of the various interventions supported by the Recovery Plan of the Italian government. Economic, fiscal, and regulatory measures are promoted in foreign nations (China, Africa, India, Europe, South-East Asia, etc.), and cur-rently in Italy, for the development of firms and the industrial sector in SEZ. Investment and consumption of production processes can lead to a polluted environment that impacts the lo-cal population and does not achieve the goal of sustainable development. This study proposes an analysis of all Campania SEZ and the introduction of a set of indicators to be used in Campanian SEZ to implement a circular economy business model across different areas (coastal, inner land, and intermediate areas) and to understand how these circular economy principles can interact with the current ecological transition for process decarbonization. This study’s methodology is based on a cross-qualitative investigation of indicators that link the sustainability of manufacturing and economic processes to environmental transformation. While foreign SEZs are rapidly increasing, Italian SEZs, notably in Campania, are still in their early stages. In this regard, the objective of this paper is to reinforce the topic of sustainability for the Campanian SEZ to support decision-making processes, as well as to provide further reflection on the development of Campanian SEZ in Italy through the lens of the ecological transition, and in line with foreign SEZs, to understand how decarbonization measures can be applied for a circular economy of production.

Information as a circular resource – facilitating information exchange to extend product-life

PurposeThis paper aims to study a circular economy business model that offers services with embedded information exchange capabilities to extend product life through maintenance and repair. Information exchange has been identified as a critical factor in advancing the principles of a circular economy, and this research was conducted to illustrate how information exchange can facilitate maintenance and repair.Design/methodology/approachThe study has a case study approach of collecting data through semi-structured interviews and questionnaires.FindingsInformation exchange on what and when to do something engages end-users in maintenance and facilitates learning. For repair, the problem description and possible solutions are information that must be exchanged. Both types of information exchange are facilitated by simple tech solutions relying on known and inexpensive technology (e.g. e-mail service, video call and text messaging).Research limitations/implicationsThe study contributes to the organisational development and knowledge management fields with novel insights on how information exchange and circular economy are related and can be facilitated.Practical implicationsThe study provides insights for companies looking for solutions on how to generate revenue from services and reduce resource consumption. The findings of the study suggest that the development of circular business models does not always require expensive high-tech solutions.Originality/valueTo the best of the authors’ knowledge, this study is unique as it is empirically based on insights into how information exchange can extend product life through the use of simple digital tools.

A Value Proposition Analysis of Emerging Circular Economy Business Models in the WEEE Sector

Due to the rapid economic growth, growing demand for high-tech products, and decreasing service life of products, global waste generation from the electrical and electronic equipment sector is increasing. From the environmental and economic perspective, the circular economy (CE) emphasizes e-waste prevention as it is one of the fastest-growing waste streams having both valuable and rare materials as well as toxic substances. It is common to manage electrical products at their end-of-life through circular practices however, knowledge and implementation of CE in the waste electrical and electronic equipment (WEEE) sector still need to be improved. End-of-life practices center on recycling, and the percentage of valuable resources recovered is low. There is a missing insight into the business opportunities for alternative end-of-life options such as reusing, repairing, and re-manufacturing that hold stakeholders from implementing circular strategies. To fill the gaps identified, we developed a research question for investigating and analyzing the services offered and the electrical products adaptable to CE business models (CEBMs) of young companies operating in the WEEE. This study aims to explore the business models (BMs) of circular practice-based business options such as buyers and sellers of used and refurbished electronic devices, information technology asset dispositions (ITADs) companies, and e-waste recyclers to enhance other researchers with a better understanding of business options toward end-of-life e-waste handling and emerging issues in this industry. We conduct a literature review on CEBMs in the WEEE and conduct a multiple-case analysis of 412 emerging circular companies in the WEEE selected from the Crunchbase database to explore their BMs. Key findings show that most young WEEE companies focus on IT and telecom equipment and consumer electronics. Emerging WEEE companies mostly involve asset management and e-waste Recycling service, followed by ITAD services, trade-in/buyback, and reselling of preowned and refurbished electrical devices service, and e-waste collection, recycling, and disposal service. These companies provide unique offerings such as information security, compliance, trustworthiness, convenience, quality, social responsibility, and charitable purpose. Studies in the future may explore other dimensions of these BMs to gain a comprehensive picture and support the design of CEBMs.

Response to COVID-19: building resilience through water and wastewater management in Ghana

Abstract This study assessed the effects of COVID-19 on Ghana's WASH system. It focused on low-income households and WASH sector stakeholders using Ayawaso East Municipality as a case study to document lessons from the pandemic's impact on the WASH sector. We used the water and sanitation system approach to understand the effects of COVID-19 mitigation measures on the WASH system. Data were collected through surveys, stakeholder engagements, and document analysis. We found that the government's WASH response increased hygiene practices, solid and liquid waste generation, and water consumption. Sanitation service providers experienced reduced demands for their services, lost clients, and increased operational expenditure. The pandemic's impact is gendered, with women and girls experiencing a greater burden. We argue that responses to the pandemic highlight the need and opportunities for sustainable management of sanitation waste through integrated, circular economy business models, turning waste into valuable resources. Responses to COVID-19 in the WASH system are multisectoral because of its interconnected nature, highlighting the need to integrate sectors beyond water and sanitation. This requires improved institutional structures, policies, investment, and professionalising service providers.