How financial performance is addressed in light of the transition to circular business models - A systematic literature review

Kanzari, Amal; Rasmussen, Josefine; Nehler, Henrik; Ingelsson, Fredrik

doi:10.1016/j.jclepro.2022.134134

Cited by 14 publications

(9 citation statements)

References 169 publications

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“…Santa-Maria et al [10] framed the CBMI research field, process, and practice, while Nußholz [11] clarified CBM concepts with resource efficiency strategies. Pietrulla & Frankenberger [12] tackled the antecedents, moderators, and outcomes of CBM, and Kanzari et al [13] investigated the financial performance, including design thinking of CBMI. Bocken et al [14] focused on frameworks associated with tools and conceptual frameworks, and business model dimensions and characteristics were analyzed from the companies' value creation effort by Ludeke-Freund et al [15].…”

Section: Literature Reviewmentioning

confidence: 99%

Circular Business Model Frameworks: A Review

Islam,

Iyer-Raniga,

Ali

2024

Highlights Sustain.

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The circular business model (CBM) concepts are vast, interconnected, and emerging. Research to date has been somewhat fragmented, and there would be value in focusing on the systemic identification of the connectivity of the topics around CBM. Furthermore, the business model innovation (BMI) process and business model implementation were identified as two separate spectra of research that should be seen collectively and added to the literature. This article reviewed 256 articles (solely focusing on “CBM frameworks”) published between 2007 and mid-2022, collected from the Scopus database, and analyzed using the content analysis method to identify the research gap/s. Results showed that under circular business model innovation (CBMI), the innovation process and their associated process modeling, archetypes, tools, experimentation, digitalization, and innovation via the inclusion of circular economy (CE) principles and sustainability in BMI were highlighted. From the CBM adoption/implementation perspectives, business ecosystem, technological innovation, product lifecycle management, CBM value dimensions (e.g., value proposition, value creation, and delivery), organizational capabilities, and dynamics were investigated. Topics around sustainability and circularity principles, strategies and organizational performance, CBM value streams, digitalization, and product-service systems were topical issues of the circular supply chain (CSC). A conceptual framework for gaining circular competencies integrating all elemental issues throughout the CBM development process (e.g., innovation, adoption within CSC) has been progressed. Based on the review, this article defined a circular business model as a business model that fundamentally applies one or more of the principles of CE at various product/service/material lifecycle stages, for which sustainability-focused technological innovation, collaboration among business ecosystem partners, and enhanced dynamic capabilities of any organization are prerequisites. Several research gaps were identified with potential avenues for future research directions, which will be helpful for policymakers, business organizations, and researchers.

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Section: Literature Reviewmentioning

confidence: 99%

Circular Business Model Frameworks: A Review

Islam,

Iyer-Raniga,

Ali

2024

Highlights Sustain.

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“…(2017), Goodall et al (2014), Kanzari et al (2022), Kurilova-Palisaitiene (2021), Low and Ng (2018), Peters (2016), andRizova et al (2020).…”

Section: Step 3-iteratively Identify Prerequisites and Assess The Sys...mentioning

confidence: 99%

“…In the proposed 5AFIR framework, the system assessment includes both a financial and environmental assessment to support the development of the remanufacturing system. Procedures for such assessments can be viewed in, for example, Butzer et al (2017), Goodall et al (2014), Kanzari et al (2022), Kurilova‐Palisaitiene (2021), Low and Ng (2018), Peters (2016), and Rizova et al (2020).…”

Section: The 5afirmentioning

confidence: 99%

5‐step approach for initiating remanufacturing (5AFIR)

Duberg

Kurilova-Pališaitienė

Sundin

2023

Bus Strat Env

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Despite remanufacturing being a value-retention process capable of bringing both economic and environmental benefits to original equipment manufacturers (OEMs), the remanufacturing market is small, and the OEM share on the market is even smaller. There are trends in OEMs hesitating to initiate remanufacturing due to the lack of knowledge or often unjustified assumptions about how remanufacturing affects their business-as-usual. To further motivate OEMs to initiate remanufacturing, there is a need to extend the remanufacturing initiation theory to showcase how remanufacturing could be initiated in practice. Therefore, this paper aims to describe a remanufacturing initiation and demonstrate the initiation steps for OEMs by developing a remanufacturing initiation framework. The framework is developed based on a remanufacturing initiation led by an OEM of robotic lawn mowers. Based on the case study, a 5-step approach for initiating remanufacturing (5AFIR) framework-the remanufacturing sapphire-was developed to interpret and visualise the remanufacturing approach taken at the studied OEM. The framework steps consist of the following:(1) Select a product family, (2) involve actors prone to be impacted by remanufacturing, (3) iteratively identify prerequisites and assess the system performance, (4) develop a plan and industrialise remanufacturing, and (5) refine and validate the assessment in Step 3.

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“…To overcome this barrier, the financial consequences of the transformation must be investigated, and the benefits must be understood. However, there is a lack of practical models to analyse the financial consequences [12,13]. Therefore, the main objective of this paper is to show how an OEM has been supported by a model for calculating the product life cycle costs when transforming to an accessbased business model.…”

Section: Introductionmentioning

confidence: 99%

Supporting the Transformation to Access-Based Business Models in a Circular Economy with a Practical Model for Calculating the Costs of the Provider

Vogt Duberg,

Sakao

2024

Advances in Transdisciplinary Engineering

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In a transformation to becoming more circular, many original equipment manufacturers (OEMs) are investigating the potential of transferring product ownership from the user to the provider, thus enabling access-based business models. Such a new model also makes the product life cycle cost borne by the provider, meaning that the OEM gains an interest in reducing the life cycle cost and prolonging the life cycle for its own benefit. In this study, a case OEM is in such a transformation and postpones the end-of-life through refurbishment and remanufacturing. However, to launch the access-based business model, the OEM needs to understand its new cash flows. Therefore, the objective of this paper is to show how an OEM has been supported by a model for calculating the product life cycle costs when transforming to an access-based business model. Through applying transdisciplinary research, a calculation model was developed in close collaboration with an OEM to calculate and visualise the product life cycle costs. The study also shows how the remanufacturing cost can be estimated based on existing repair and maintenance data. Furthermore, the importance of developing decision-making insights to persuade upper management that the new circular practices can provide boosted profitability is highlighted.

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How financial performance is addressed in light of the transition to circular business models - A systematic literature review

Cited by 14 publications

References 169 publications

Circular Business Model Frameworks: A Review

Circular Business Model Frameworks: A Review

5‐step approach for initiating remanufacturing (5AFIR)

Supporting the Transformation to Access-Based Business Models in a Circular Economy with a Practical Model for Calculating the Costs of the Provider

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