Designing the Business Models for Circular Economy—Towards the Conceptual Framework

By Mateusz Lewandowski. 2016

1,335 citations recorded by the source corpus.

Switching from the current linear model of economy to a circular one has recently attracted increased attention from major global companies e.g., Google, Unilever, Renault, and policymakers attending the World Economic Forum. The reasons for this are the huge financial, social and environmental benefits. However, the global shift from one model of economy to another also concerns smaller companies on a micro-level. Thus, comprehensive knowledge on designing circular business models is needed to stimulate and foster implementation of the circular economy. Existing business models for the circular economy have limited transferability and there is no comprehensive framework supporting every kind of company in designing a circular business model. This study employs a literature review to identify and classify the circular economy characteristics according to a business model structure. The investigation in the eight sub-domains of research on circular business models was used to redefine the components of the business model canvas in the context of the circular economy. Two new components—the take-back system and adoption factors—have been identified, thereby leading to the conceptualization of an extended framework for the circular business model canvas. Additionally, the triple fit challenge has been recognized as an enabler of the transition towards a circular business model. Some directions for further research have been outlined, as well.

Subfields: Industrial and Manufacturing Engineering, Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/437e569724b454aab00a819653a68125cb5f30ea

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Citations in the corpus

The Relevance of Circular Economy Practices to the Sustainable Development Goals (2019, background): “Many multinational companies and small- and medium-sized enterprises are becoming aware of the potential benefits and are beginning to explore the options of CE business models (Lewandowski 2016).”
A taxonomy of circular economy indicators (2018, background): “Lewandowski (2016) presented an extensive analysis of 20 types of circular business models, identifying and classifying the CE characteristics according to a business model structure, such as the business model canvas.”
Integrating the green economy, circular economy and bioeconomy in a strategic sustainability framework (2021, background): “In principle, sustainability considerations would require to prioritize the use of biomass for food security, followed by higher value applications (Lewandowski, 2016).”
The battle of the buzzwords: A comparative review of the circular economy and the sharing economy concepts (2021, background): “…in business model literature are caused by scientists who consider the private sector to be highly relevant to these economic models and who consider business models to be vehicles that drive SE and CE (Lüdeke-Freund et al., 2018; Lewandowski, 2016; van Renswoude et al., 2015; Rosa et al., 2019).”
Circular economy engagement: Altruism, status, and cultural orientation as drivers for sustainable consumption (2021, background): “Consumers play a significant role in CE spheres of influence, and for it to be tenable, society needs to acquire more sustainable behaviors (Lewandowski, 2016).”
Eco-innovation and Circular Business Models as drivers for a circular economy (2018, positive): “In this sense, Lewandowski (2016) suggests a framework combines the components of the business model canvas as designed by Osterwalder & Pigneur and the Resolve framework on how to implement the Circular Economy principles.”
Investigation of circular economy practices in the context of emerging economies: a CoCoSo approach (2021, background): “circular management and monitoring of the circular activities Lewandowski (2016); Geissdoerfer et al. (2017)”
Challenges in supply chain redesign for the Circular Economy: a literature review and a multiple case study (2018, background): “A company will thus reduce its future sales, potentially putting at risk its survival in the long term (Lewandowski 2016; Linder and Williander 2017).”
Exploiting the Potential of Public Procurement: Opportunities for Circular Economy (2019, methodology): “…the link between public procurement and promotion of circular business models, we apply the ReSOLVE model (Ellen MacArthur Foundation 2015c; Lewandowski 2016), which identifies six different circular business models as follows: - Regenerate: Public procurers can, for example, require…”