Economy Business Models Research Articles

A Logistic Platform to ensure a sustainable transportation of Waste from Electrical and Electronic Equipment

The C-SERVEES project, funded by European Union's Horizon 2020 programme, aims to boost a resource-efficient circular economy in the electrical and electronic (E&E) sector through the development, testing and validation of new circular economic business models. Product recovery is an emerging business area which shall be attractive from both economic and environmental point of view. Several points contribute to the success of this action, such as costs, time and safety for disassembling products, availability and costs of raw materials, disposal costs of end-of-life products and transport impact of reverse logistics. In this context, the Logistic Platform, developed by RINA-C, aims to ensure a sustainable transportation of the WEEE (Waste from Electrical and Electronic Equipment) among the stakeholders to enable the re-use of the recovered materials and to re-insert them in the process.

Implementing a circular economy business model canvas in the electrical and electronic manufacturing sector: A case study approach

By and large, the electrical and electronic (E&E) sector operates in a predominantly linear economy driven by traditional business model (BM) canvases. Evidence has revealed that E&E manufacturers remain unsure of the potential benefits of circular economy business models (CEBMs). Additionally, cohesive insights into E&E product manufacturers' implementation of CEBM Canvas are absent from the literature. Hence, this research adopted a qualitative approach based on eight concurrent and iterative stakeholders' focus groups to explore the application of CEBM Canvas by E&E product manufacturers to support them in developing circular economy (CE) actions leading to opportunities for value proposition, creation, and capture. Results show that the CEBM Canvas CE actions provide E&E manufacturers prospects for value creation and delivery through: (1) enhancing repair, refurbishment, reuse, remanufacturing, and recycling activities; (2) expanding their circular offerings via Product-Service-System to optimise value capture from the one-off sale of E&E products to regular income streams; and (3) reducing the costs associated with raw material and energy inputs and waste management. This research contributes to novel advancement of product specific CEBM Canvas and associated CE actions within the E&E sector and their transferability potential to other economic sectors, such as construction and textiles.

Crowd Logistics: A Survey of Successful Applications and Implementation Potential in Northern Italy

Nowadays, last-mile logistics represents the least efficient stage of supply chains, covering up to 28% of the total delivery cost and causing significant environmental emissions. In the last few years, a wide range of collaborative economy business models has emerged across the globe, rapidly changing the way services were traditionally provided and consumed. Crowd logistics (CL) is a new strategy for supporting fast shipping services, entrusting the management of the last-mile delivery to the crowd, i.e., normal people, who agree to deliver goods to customers located along the route they have to travel, using their own transport means, in exchange for a small reward. Most existing studies have focused on evaluating the opportunities and challenges provided by CL through theoretical analysis and literature reviews, while others have proposed models for designing such emerging distribution networks. However, papers analyzing real successful applications of CL worldwide are lacking, despite being in high demand. This study attempted to fill this gap by providing, at first, an overview of real CL applications around the globe to set the stage for future successful implementations. Then, the implementation potential of CL in northern Italy was assessed through a structured questionnaire delivered to a panel of 214 people from the Alma Mater Studiorum University of Bologna (Italy) to map the feasibility of a crowd-based system in this area. The results revealed that about 91% of the interviewees were interested in using this emerging delivery system, while the remaining respondents showed some concern about the protection of their privacy and the safeguarding of the goods during transport. A relevant percentage of the interviewees were available to join the system as occasional drivers (ODs), with a compensation policy preference for a fixed fee per delivery rather than a variable reward based on the extra distance traveled to deliver the goods.

A Sustainable Fashion Industry Business Model Revolution Based on the Metaverse: Practices and Reciprocal Processes

The technological breakthrough of the metaverse makes it accessible as an online social environment where customers can socialize and reside in the form of avatars, as well as able to possess virtual property in the same manner they own physical property. The incorporation of the fashion industry into the metaverse can contribute to the development of its sustainability by revolutionizing the design, production, and communication stages of the supply chain, enabling circular economy business models, and minimizing environmental damage while satisfying customer needs. Through a review of relevant theoretical literature and an analysis of practices, this paper intends to illustrate a mechanism, describe how digital fashion based on the metaverse benefits industry sustainability, consumers, and the environment, and serve as a reference for practitioners seeking to advance their business strategies.

Fortifying Social Acceptance When Designing Circular Economy Business Models on Biowaste Related Products

(1) Background: VALUEWASTE, a European Commission Horizon 2020 project, is attempting to find new and sustainable sources of protein and fertiliser products using biowaste as a resource. Introducing these products to the market is essential to understand the social acceptance, behavioural changes and socioeconomic impacts related to products and value chains. (2) Methods: The applied framework provides insights from market, socioeconomic, and community acceptance points of view. Initially, we designed the context and targets of the study. The acceptance levels were tested in two study regions: the cities of Murcia (Spain) and Kalundborg (Denmark). Secondly, we established a survey questionnaire (N = 523) combining social acceptance and life-cycle assessment methodology questions. Lastly, we performed a scenario-based workshop discussing behavioural changes related to the introduction of new bio-products to customers. (3) Results: Our study of developing new bio-products (food, feed, fertiliser) from biowaste produced forceful comparative results from the two regions regarding three aspects of social acceptance: market, socioeconomic, and community. (4) Conclusions: The present study, engaging citizens, consumers, producers, and policy makers, provides insights into what is important for the social acceptance of new protein sources for food, feed, and recycled fertilisers from bio-waste in the Murcia and Kalundborg city regions. Our observations, based on analyses applying three dimensions of social acceptance, can be directly applied elsewhere, guiding decision makers on how to fortify social acceptance regarding new circular economy business models and the bioeconomy in Europe.

Comprehensive analysis of BSY as a biomass for potential energy resource recovery

Beer is one of the most consumed beverages in the globe reaching an average consumption of 23L per person per year. This makes brewing industry one of the leading economic contributors to most countries. Large amount of organic waste that pollute the environment are produced in beer making processes. The brewing by-products may reach 3%–30% of the volume of beer produced. The management and disposal of the by-products represent a significant cost for the brewery industry and a great concern for a sustainable brewery operation. There is need to resolve the waste management and environmental issues associated with this process using innovative, symbiosis and circular economy approach. Bio-circular models increase the need for resource conservation and waste beneficiation. This study explored the use of brewery spent yeast for energy production under anaerobic digestion and to evaluate its suitability as biomass for energy resource recovery with the potential to shift the brewery sector from the linear to the circular economy practice. Waste quantification, characterisation, and waste to energy conversion through biomethane potential test with AMPTS 11 set-up were investigated. It was observed that the brewery spent yeast had good proximate and ultimate results with the optimum biomethane yield obtained at 304,75 Nml. It was established that the brewery spent yeast offered a high prospect as a biomass and for the future energy mix with potential to contribution to sustainable circular economy business model.

Precursor considerations for new circular economy business models

Circular economy thinking encourages society to adopt sustainable patterns of consumption and production. This basic principle aligns with the objectives of the United Nations’ Sustainable Development Goals (SDGs), which include improving human welfare through equal access to drinking water and sanitation; together with reliable, sustainable, and modern energy supplies for all. Traditional approaches to delivering public utility services have been rooted within the Baconian view that the environment is a pool of resources that exist for the betterment of humankind. Whilst this tradition has delivered water supply, sanitation, electricity generation, and waste management services, that have improved the lives of countless humans, the provision of these services largely relies on business models and technologies that have had significant adverse impact upon the natural environment. To inform the development of new sustainable business models, this paper explores circularity concepts from the perspective of decision makers and actors responsible for the delivery of public utility infrastructure. Through a review of the secondary literature, this paper examines core circular economy principles and maps these against fundamental business model elements to synthesise a framework of precursor considerations for future business models. This framework has potential application in testing the extent to which existing business models in the utility sector support the transition to a circular economy and how current business models can be adapted to assist the achievement of sustainable development.

Circular economy business models: Towards achieving sustainable development goals in the waste management sector—Empirical evidence and theoretical implications

AbstractThis paper investigates how and whether circular economy (CE) business models affect the implementation of sustainable development goals (SDGs) in the waste management sector. A case study is used to determine the relationship between CE business models and SDGs. It shows that CE business models, potentially, can contribute directly to achieving a significant number of SDGs. The strongest relationships are between the CE business model and the targets of SDG4 (Quality education); SDG 5 (Gender equality); SDG 7 (Affordable and Clean Energy), SDG 8 (Decent working and economic growth); SDG 9 (Industry, innovation and infrastructure), SDG 11 (Sustainable cities and communities) SDG 12 (Responsible consumption and production). After a narrative literature review on the intersection between CE and SDGs, the paper performed a case study on Contarina SpA, a firm that developed a business model to recycle wastes into recyclable materials under a CE approach. The case findings could stimulate further research into how this and similar types of business models will help societies to change from the ‘use‐it‐once‐and‐throw‐it away’ mentality of linear business models to the integrated, holistic, CE model that seeks to emulate nature's cyclical systems, and achieve the implementation of sustainable development goals (SDGs).

Organizational and economic principles of creation and implementation of a circular business model of development

The topicality of the topic is due to the problems of the essence and the basic principles of the formation and development of the circular economy. The well-known systems of circular economy principles 3R and 9R have been supplemented with new principles that more widely reveal the content and possibilities of transition to a closed-type economy. The purpose of the research is to determine improved organizational forms of closed-loop business models, developed on the basis of advanced principles of the circular economy, adapted to the realities of Ukraine. The research methodology consisted of a set of used methods, cognitive and systemic principles of research, a sequence of stages that included: the study of scientific literature, the analysis of the current state and international experience on issues of circular transformations, substantiation of one's own concept and organizational forms of a business model of a closed economy. The scientific work compares and summarizes the principles of circular economy development. Systematization of the classification features of types of circular business models proposed in modern practice has been carried out. On the basis of the conducted research, a scheme of the conceptual model of the R-economy is proposed. The main stages of implementing the circular business model in practical activities are proposed. The key advantages of the circular business model are defined as future long-term economic benefits that create additional potential for business competitiveness and contribute to solving public environmental problems. Based on the generalization, modern obstacles and socio-economic benefits from the transition to a circular model of development for business and society were identified. The modern practice of successful implementation of circular business models is analyzed. Proposals regarding the design of food production for the creation of a closed-type economic model are substantiated. Various archetypes of the organization of closed-type business models have been studied. The scheme of organizational forms of circular economy business models is presented, taking into account the specialty of the value chain, as one of its most effective mechanisms

How start-ups in emerging economies embrace circular business models and contribute towards a circular economy

PurposeThe purpose of this paper is to investigate the practices that start-ups in emerging economies can implement to design circular economy business models and how they can create and capture value from a circular economy business model.Design/methodology/approachThe paper adopts a qualitative case method approach with semi-structured interviews with start-up founder promoters, its employees, its beneficiaries and its customers, conducted in two local Indian start-ups engaged in the manufacture of products and providing services that promote adoption of circular economy principles.FindingsAnalysis of the two business models reveals common patterns in building value proposition. The findings suggest that start-up ventures adopt an iterative approach to produce reusable and interlinked products and co-create with customers, vendors and local communities. They adopt mechanisms that can create, deliver and capture value while maintaining economic viability, and thus contribute towards micro- and macro-level benefits.Research limitations/implicationsThis study maximizes the depth of the phenomenon under investigation by leveraging case study methodology. Future research opportunities could be found in quantitative studies to increase the generalizability of the findings of this paper.Practical implicationsThe paper presents a theoretical model linking the circular business model design and deployment mechanisms that can be used by start-up entrepreneurs desirous of embracing circular economy principles and thus contribute towards environmental, economic and developmental goals in emerging economies.Social implicationsTo accelerate the transition of adoption of circularity principles in emerging markets, start-up ventures could adopt circular business models that contribute towards achieving positive behavioural change. This can be achieved by integrating with different stakeholders in the value network such that they play a vital role in the process of value creation and delivery and benefit from the value captured.Originality/valueAn interdisciplinary approach that integrates the research streams of circular economy, and business model design has been pursued to identify the design and deployment mechanisms adopted in the circular business models of start-ups in real-world emerging economies’ context.

How can Digitalisation Enable the Transition to a Circular Economy?

Our world is currently facing economic challenges, growing populations, resource scarcity, environmental challenges, and social issues. The linear economic model that led to this situation is not sustainable anymore. The circular economy is an emerging concept, and an alternative solution, representing an economic model that strategically reduces waste in a closed-loop system. New technologies of the Industry 4.0 era can potentially enable circular economy principles and facilitate the transition to a circular economy. However, the link between these fields is yet to be widely established and understood. Therefore, this study provides a comprehensive systematic overview to contribute to the understanding of circular economy business models and the enabling role of advanced digital technologies. The findings suggest new value chain characteristics, new operations models, and highlight the role of circular design, reverse flows, and collaboration. Merging circular economy and Industry 4.0 underlines that many factors are interrelated and indeed should be combined instead of analysed in siloes. This paper proposes a conceptual model to address how new circular business models can integrate digitally adaptive transformations and to emphasise the need for a more interconnected system. Finally, proposals for future research will be reflected upon.

‘Circular patents’ and dynamic capabilities: new insights for patenting in a circular economy

ABSTRACT This study investigates the intangible assets related to the circular economy, defined as ‘circular patents’, that are classified and measured to be bundled into the innovation capabilities of a firm. The impact of a business’s capabilities on its level of circular patent activism is empirically analysed in this study in a theoretical framework of dynamic capabilities. To this end, a model of the cause-and-effect relationship between the circular patents held by firms and their capabilities is designed using partial least squares structural equation modelling (PLS-SEM) and is tested using a sample of 120,406 patents in 2216 Spanish companies. In this analysis, patents that can foster the sharing economy and the circular economy in sensu latu are also considered circular patents, in addition to waste patents and other green patents, offering an enhanced measurement of the intangible assets related to the circular economy. Based on these results, this study provides new insight of how accounting can enable or constrain the transition to a circular economy business model through the measurement and valuation of related intangible assets and the specific business’ capabilities in an environmental management framework.

Sustainable Supply Chain Management in a Circular Economy: A Bibliometric Review

Since the mid-2010s, the circular economy has emerged as a key conceptual lever in corporate efforts to achieve greater environmental sustainability. Corporations have increasingly drawn upon the circular economy perspective in efforts to rethink sustainable supply chain management practices. This new corporate approach to sustainable supply chain management is evident in an emerging literature that has yet to be fully documented. In this systematic review of research, bibliometric methods were applied to a database of 709 Scopus-indexed documents. Author co-citation analysis identified four schools of thought comprising the intellectual structure of this literature: Sustainable Production and Environmental Management, Sustainable Supply Chain Management, Reverse Supply Chain Management, and Circular Economy. Synthesis of these themes suggests that the adoption of a circular economy perspective is transforming sustainable supply chain management in two important ways. First, this perspective reorients supply chain management away from a narrow focus on efficiency and waste reduction and towards a new paradigm of redesign, reuse, and product transformation. Second, adoption of the circular economy highlights and leverages reverse cycles in the supply chain. Thus, circular economy business models enable supply chain management to enhance corporate contributions to sustainable production and consumption. Drawing upon this framing of supply chain management within a circular economy, the review proposes a new framework for accelerating corporate sustainability.

Energy management to foster circular economy business model for sustainable development in an agricultural SME

The role of energy management (EM) capabilities in enhancing circular economy (CE) business models of agricultural small and medium-sized enterprises by way of developing dedicated organisational competences is an under-investigated topic. In addition, the contribution of CE business models to the sustainability performance of agro-energy businesses deserves further investigation. To cover these gaps, a case study was conducted within an agricultural firm that exploits a high-tech hydroponic system to cultivate tomatoes. Interviews were conducted with top management of the firm and technicians to identify the EM capabilities that foster the development of organisational competences to implement a CE business model. The framework of dynamic capabilities was used to discuss the results. Results indicate that EM and auditing capabilities play pivotal roles in enhancing knowledge of sustainable production methods and accountability, and constitute the microfoundations of dynamic capabilities that are needed to sense, seize, and reconfigure the business model around CE, which allows the achievement of sustainability performance. EM, along with the promotion of an organisational culture of energy conservation, also enhances the knowledge and implementation of CE business models. Implications for SMEs’ agricultural managers relating to EM implementation are discussed, given its pivotal role in the implementation of CE business models.

Innovation of Platform Economy Business Model Driven by BP Neural Network and Artificial Intelligence Technology.

In order to enhance the competitiveness of enterprises, how to evaluate and enhance the competitiveness of B2B e-commerce enterprises and promote the orderly and healthy development of B2B e-commerce industry are discussed. This paper puts forward the research on the innovation of platform economic business model driven by BP neural network and artificial intelligence technology. BP neural network is used to study and evaluate the competitiveness of B2B e-commerce companies. According to the B2B e-commerce company competitiveness theory and BP neural network algorithm, combined with BP neural network and B2B e-commerce company competitiveness evaluation index system, a BP neural network model is designed to analyze the competitiveness of B2B e-commerce enterprises. Determine the expected value of network samples, select G1 method to determine the subjective weight, and select entropy weight method to determine the objective weight. With the help of the function in the MATLAB neural network toolbox, the neural network is trained. The results show that when the training times reach 3297 times, the sample mean square error is 9.9869e − 06, and the training network reaches convergence. The samples of three enterprises test the trained neural network and input the data of three test samples into the trained BP neural network, and the output results are 0.1531, 0.1371, and 0.1557, respectively. The network model constructed in this paper is effectively close to the training samples. The established BP neural network has good performance and can be used to evaluate the competitiveness of B2B e-commerce companies. Accelerate technological change and realize innovation. Technological capability is the inexhaustible driving force for the development of enterprises. Only with the innovation of keeping pace with the times can application-oriented e-commerce enterprises meet the needs of customers and the market, form the difference between goods or services, and then enable enterprises to win more customers and market share.

Integrating circular economy strategies and business models: a systematic literature review

PurposeThis study aims to undertake a review of the circular economy (CE) and business model (BM) literature by conducting a thematic analysis and developing a framework.Design/methodology/approachTo address the research questions, a systematic literature review was conducted. Finally, 106 publications were chosen based on two main criteria.FindingsThe authors performed an athematic analysis of CE drivers. This analysis identifies five key areas: environmental, economic, social, regulatory and institutional factors, as well as emerging approaches for addressing CE drivers. A framework for the circular economy business model (CEBM) has been developed by integrating BM value dimensions and three primary CE strategies, including closing, slowing and narrowing resource loops. Additionally, the authors’ framework considers the CEBM’s sustainability impact in emerging economies.Research limitations/implicationsThis study is limited in two ways: one is inherent in the concept of CE, particularly CEBM, and the other is methodological.Originality/valueThis study contributes to the body of knowledge about CE and BM in three ways. First, this research includes a thematic analysis of CE drivers, as well as themes and subthemes. Additionally, the authors discuss an emerging approach for CE drivers. Second, the authors make a contribution by proposing a framework for CEBM that takes value dimensions and CE strategies into account for the emerging economy context. Third, the authors shed light on potential avenues for further research.

Circular Economy Business Models in the Micro, Small, and Medium Enterprises: A Review

MSME business should be built based on circular economy (CE)-based business models. The purpose of this article is to presenta review of several articles that have been published in Scopusdiscussing the CE-based business model and MSMEs to findresearch gaps and future research agendas. It used some tools of thetheoretical assay, such as bibliometric analysis, systematic literaturereview, theory, context, and characteristic methodology (TCCM).The paper outlines all findings of analyzed literature about CE’sbusiness model applied by MSME in the Scopus document untilJune 2021. The findings of this study provided more high-qualityevidence about research and practical gaps regarding the CE-basedbusiness model and MSME, which needs more research focuseson market desirability in the future and more understanding ofinternal processes in MSME’s case studies. The implication of thisarticle is to provide a future research agenda based on a collectionof research gaps as a basis for empirical research.JEL Classification: L26, M10, Q56

An Overview of Packaging Waste Models in Some European Countries

Efficient packaging waste management systems are essential considering recent revisions of the European legislation on packaging waste management that sets ambitious targets. European rules aim to deal with the increasing quantities of packaging waste, which cause environmental problems. Consequently, it is necessary to identify functional packaging waste management systems to achieve these targets effectively and efficiently. However, given the heterogeneity of the different packaging management systems, policymakers, scholars, and industry operators struggle to have a comparative view. The number of non-harmonized laws in force across countries, autonomous recycling targets, and constant updates are prominent problems that make it difficult to obtain comparable information for research, business, and policymaking. To fill this gap, our research question consists of assigning responsibilities for prevention, collection, recycling, and recovery and an overview of some models at a glance with respect to the general governance and functioning of the system. We base our research on a multiple-case design since more cases are examined using complementary data collection methods, analysis of the previous literature, reports, legislation, and business and institutional websites. Our results provide insights from the following cases: Germany, France, the United Kingdom, the Netherlands, Portugal, Denmark, Spain, and Italy. In addition, policy implications emerge as our insights help overcome barriers in the European market’s development caused by the different rules on packaging management and design serving policymakers that aim to harmonize the management of packaging waste. The paper also contains managerial implications for circular economy business models that can be used by managers who aim to design or upgrade their business models according to both recent legislative upgrades and packaging management systems.

Proposition of a structural model for business value creation based on circular business models, innovation, and resource recovery in the pet industry

AbstractBased on the assumptions of circular economy, resource recovery, and innovation, the aim of this research is to analyze the relationship between innovation constructs, resource recovery practices, Circular Economy Business Models (CEBMs), and value creation in a fast‐growing emerging economy. A set of empirical data from 443 companies in the pet industry were used. In terms of methodology, the study was processed using the SPSS software, using Structural Equation Modeling, with manipulation of primary data. CEBMs demand greater engagement, internalization of initiatives, and synergy with the operating ecosystem of the pet industry. Innovation is present but has the potential for expansion through adherence to the innovation ecosystem and its technological package, partnerships, and relationships so that companies can scale up and create value with the support of resource recovery practices. The results of this study can be useful for companies in the pet industry, as it allows the identification of areas and practices that require their attention to improve organizational performance and create value for the business based on initiatives supported by the assumptions of circular economy and sustainability.

Circular disruption: Digitalisation as a driver of circular economy business models

AbstractNew circular business models can evolve at all stages of the life cycle of a product. Digitalisation can drive disruptive innovations, new business models and novel ways of collaboration and thus can accelerate the economic transition to more resource‐efficient and circular production systems. Yet, there is little empirical research on the enabling role of digitalisation for a circular economy. To address this gap, this paper investigates the role of digitalisation in facilitating circular business models, based on the empirical analysis of a data set of 599 German manufacturing firms and 296 industrial service providers. While relatively few German firms rely on new business models to foster their resource efficiency strategy, we find this share higher for companies with a strong digital focus in the manufacturing sector. This suggests that digitalisation can indeed be a driving force for the implementation of circular business models.