Systemic circular business model application at the company, supply chain and society levels—A view into circular economy native and adopter companies

Abstract

This study contributes to the conceptualization of a sustainable circular business model (CBM), the application of the circular economy (CE) by companies. The study utilized a three‐level framework adapted from the CE literature with company (micro), supply chain (meso) and society (macro) levels. This multiple‐case study in the textile industry included two types of companies operating in the CE: companies founded on the sustainable principles of a CE (natives) and companies transitioning to a CE from the linear economy (adopters). The findings show that the adopters emphasized long‐term economic sustainability on a company level and implemented CE elements to varying degrees on all three levels. The natives pursued business decisions from environmental and social sustainability standpoints, and the three levels were integral in their systemic approach to a CE. The study highlights two key claims: established operational structures and economic volition hindered adopters in their systemic CE implementation, and an integral part of the CBM for natives was a proactive approach towards the society level.

Circular Economy Business Models: a Repertoire of Theoretical Relationships and a Research Agenda

“…Finally, as the CE draws on systems thinking, systems theory is a pertinent perspective to further advance the theoretical coupling of CBM studies and better inform the relationship between CE and CBMs, which, according to Rovanto and Bask (2020) [ 38 ] “is still rather informal and ill-defined” (p. 5). Future research questions for advancing the study of CBMs from a systems theory perspective could include: how exactly do CBMs contribute to maintaining stocks of natural resources?…”

Circular Economy Performance Measurement in Manufacturing Firms: A Systematic Literature Review with Insights for Small and Medium Enterprises and New Adopters

“…Awareness over a specific aspect of interest and over the firm's impact on it [35,[39][40][41] Competence. Adequate competences to tackle the specific aspect of interest [30][31][32]35] Maturity Level. Maturity level in terms of transition towards the specific aspect of interest [27,32,35] Such a categorization is relevant for properly understanding the needs of the different types of firms, and, as for the measurement of performance, reasoning on their specific characteristics [42,43].…”

“…Adequate competences to tackle the specific aspect of interest [30][31][32]35] Maturity Level. Maturity level in terms of transition towards the specific aspect of interest [27,32,35] Such a categorization is relevant for properly understanding the needs of the different types of firms, and, as for the measurement of performance, reasoning on their specific characteristics [42,43]. An effective performance-measurement system should indeed allow for both a general and a tailored application, having flexibility as one of its main features, so as to adapt to a firm's continuous and dynamic evolution [18].…”

“…Their size could be, at first glance, considered a proxy of their competencies [30], although this might not always be the case [31]. CE adopters can be defined as firms born in a linear economy, making efforts to implement CE in their existing business models [32]. NAs can be defined as firms at the first stages of the circular transition [33,34] and at the initial stage of the adoption process [35].…”

“…Each of these characteristics might apply in different ways and to different extents to SMEs and NAs. As it can be inferred from Table 1, a firm could be both an SME and an NA; nonetheless, also LEs can be included within NAs, while native firms, i.e., firms founded on CE principles, might include SMEs [32].…”