Circular business models for sustainable development: A “waste is food” restorative ecosystem

Abstract

Our aim is to provide a better understanding of a business model based on circular principles. In particular, we focus on two issues that support the development of a circular business model: (a) the focal actor as orchestrator of the circular network and (b) the circular ecosystem encompassing suppliers, customers, research centers, and public authorities, in which each actor/stakeholder plays a specific role, based on effective interorganizational relationships. The research method applied is an in-depth nested single case study of a circular project. Our results highlight an exemplar case of an ecosystemic business model in agriculture, involving different types of innovation and strong collaboration among network members, orchestrated by a focal firm. The abductive approach used led to the formulation of some research propositions and to the identification of some adoption factors and barriers to growth in circular business models.

Why Do Companies Pursue Collaborative Circular Oriented Innovation?

“…The 'hard' drivers and barriers for COI derive from the required systems perspective which increases the level of complexity and interdependency, which motivates increased collaboration. Collaboration increases the ability to assess the feasibility or suitability to integrate CE recovery strategies, business models, value network combinations, and the required processes to operationalise COI [18,21,51,52]. Such explorations are motivated by the desire to understand and develop circular resource flows, and potential new value capture opportunities or reduced impacts, but these are hard to assess or quantify [24,35,[53][54][55].…”

Business model based on strong sustainability: Insights from an empirical study

“…Permaculture corresponds to this implication because it involves designing a systemic environment that takes into consideration the interdependencies and cycles existing in nature, including the water cycle, relationships and interactions between nature and humans, and the ultimate design of self‐sustaining and sustainable ecosystems (Holmgren, ). Another example of interdependent systemic thinking in business is the development of circular flows conceptualizing waste as a resource (Perey et al, ; Zucchella & Previtali, ).…”

Designing business models in circular economy: A systematic literature review and research agenda

“…Most of the literature, especially in managerial journals, has recently focused on circular economy in firms' business models and on the definition of taxonomies aimed at understanding the dynamics of value creation and capture in circular business models (Antikainen & Valkokari, ; Bocken, de Pauw, Bakker, & van der Grinten, ; Lewandowski, ). Circular economy claims to have made profound changes in firms' business models for new value propositions and competitive advantage (Linder & Williander, ; Urbinati et al, ; Zucchella & Previtali, ).…”