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Circular business models in high value manufacturing: Five industry cases to bridge theory and practice

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  • Okechukwu Okorie
  • Fiona Charnley
  • Jennifer Russell
  • Ashutosh Tiwari
  • Mariale Moreno

Abstract

The transition to a circular economy (CE) requires companies to evaluate their resource flows, supply chains, and business models and to question the ways in which value is created. In the high value manufacturing (HVM) sector, this evaluation is critical, as HVM enables value in nonconventional forms, beyond profit, including unique production processes, brand recognition, rapid delivery times, and highly customized services. We investigate the role of value, cost, and other factors of influence in the selection of a circular business model (CBM) for HVM. Explored through five case studies using a qualitative evaluation of circularity, we then contribute to the emerging field of CBMs by modifying the CBM canvas that can capture the nontraditional value, traditional value, cost, and other influencing factors enabled via CBM adoption in HVM. Finally, the important role of digital technologies for incentivizing and enabling CBM adoption, is clarified.

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  • Okechukwu Okorie & Fiona Charnley & Jennifer Russell & Ashutosh Tiwari & Mariale Moreno, 2021. "Circular business models in high value manufacturing: Five industry cases to bridge theory and practice," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1780-1802, May.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:4:p:1780-1802
    DOI: 10.1002/bse.2715
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    References listed on IDEAS

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    1. Swee Kuik & Akhil Kumar & Li Diong & Joowon Ban, 2023. "A Systematic Literature Review on the Transition to Circular Business Models for Small and Medium-Sized Enterprises (SMEs)," Sustainability, MDPI, vol. 15(12), pages 1-22, June.
    2. Abderahman Rejeb & Karim Rejeb & Suhaiza Zailani & Yasanur Kayikci & John G. Keogh, 2023. "Examining Knowledge Diffusion in the Circular Economy Domain: a Main Path Analysis," Circular Economy and Sustainability,, Springer.
    3. Alessandra Neri & Marta Negri & Enrico Cagno & Vikas Kumar & Jose Arturo Garza‐Reyes, 2023. "What digital‐enabled dynamic capabilities support the circular economy? A multiple case study approach," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 5083-5101, November.
    4. Ashish Dwivedi & Sanjoy Kumar Paul, 2022. "A framework for digital supply chains in the era of circular economy: Implications on environmental sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1249-1274, May.
    5. Marco Antonio Paula Pinheiro & Daniel Jugend & Ana Beatriz Lopes de Sousa Jabbour & Charbel Jose Chiappetta Jabbour & Hengky Latan, 2022. "Circular economy‐based new products and company performance: The role of stakeholders and Industry 4.0 technologies," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 483-499, January.
    6. Elizaveta Averina & Johan Frishammar & Vinit Parida, 2022. "Assessing sustainability opportunities for circular business models," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1464-1487, May.
    7. Jhon Zartha & Gina Orozco & Diana Barreto & Diego García, 2024. "Sustainable Innovation in Organizations: A Look from Processes, Products, and Services," Sustainability, MDPI, vol. 16(6), pages 1-16, March.
    8. Ahmad, Farhan & Bask, Anu & Laari, Sini & Robinson, Craig V., 2023. "Business management perspectives on the circular economy: Present state and future directions," Technological Forecasting and Social Change, Elsevier, vol. 187(C).

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