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How to innovate business models for a circular bio‐economy?

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  • Mechthild Donner
  • Hugo de Vries

Abstract

Shifting from a linear to a circular bio‐economy requires new business models. The objective was getting insights into the uncharted research field of business model innovation for a circular and sustainable bio‐economy within the agrifood sector. Eight European cases valorising agricultural waste and by‐products by closing loops or cascading were studied regarding their innovation drivers and elements, via interviews, on‐site visits and secondary data. In this domain, the findings highlight that business model innovations are depending on the (i) macro‐environmental institutional‐legal conditions and market trends, (ii) driven by internal economic, environmental and/or social objectives, but especially strongly linked to (iii) other actors often from different sectors seeking synergies and (iv) value co‐creation via combined organisational and technological innovations. Business models for a circular bio‐economy thus depend on various action levels and need radical combined organisational and technological innovations for a most efficient usage of agricultural waste and by‐products. This also means new business configurations instead of linear innovation strategies currently still being dominant due to economic viability.

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  • Mechthild Donner & Hugo de Vries, 2021. "How to innovate business models for a circular bio‐economy?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1932-1947, May.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:4:p:1932-1947
    DOI: 10.1002/bse.2725
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    2. Giurca, Alexandru & Befort, Nicolas, 2023. "Deconstructing substitution narratives: The case of bioeconomy innovations from the forest-based sector," Ecological Economics, Elsevier, vol. 207(C).
    3. Khan, Feroz & Ali, Yousaf, 2022. "Moving towards a sustainable circular bio-economy in the agriculture sector of a developing country," Ecological Economics, Elsevier, vol. 196(C).
    4. Barbara Brenner & Daria Drdla, 2023. "Business Model Innovation toward Sustainability and Circularity—A Systematic Review of Innovation Types," Sustainability, MDPI, vol. 15(15), pages 1-20, July.
    5. Mechthild Donner & Hugo de Vries, 2023. "Innovative business models for a sustainable circular bioeconomy in the french agrifood domain," Post-Print hal-04047682, HAL.
    6. Ravinder Kumar & Sumit Gupta & Ubaid Ur Rehman, 2023. "Circular Economy a Footstep toward Net Zero Manufacturing: Critical Success Factors Analysis with Case Illustration," Sustainability, MDPI, vol. 15(20), pages 1-19, October.
    7. Wang, Xinxin & Xu, Zeshui & Qin, Yong & Skare, Marinko, 2021. "Service networks for sustainable business: A dynamic evolution analysis over half a century," Journal of Business Research, Elsevier, vol. 136(C), pages 543-557.
    8. Maria Rosaria Alfano & Claudia Cantabene & Amedeo Lepore & Stefano Palermo, 2023. "The green to circular bioeconomy transition: Innovation and resilience among Italian enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6094-6105, December.
    9. Maria Riegler & Anna M. Burton & Markus Scholz & Katharina de Melo, 2023. "Why companies team up for sustainable development: Antecedents of company engagement in business partnerships for sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4767-4781, November.
    10. 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.
    11. Essen, Anna & Frishammar, Johan & Cenamor, Javier, 2023. "Entering non-platformized sectors: The Co-evolution of legitimacy debates and platform business models in digital health care," Technovation, Elsevier, vol. 121(C).
    12. Koppiahraj Karuppiah & Bathrinath Sankaranarayanan & Syed Mithun Ali, 2023. "Towards Sustainability: Mapping Interrelationships among Barriers to Circular Bio-Economy in the Indian Leather Industry," Sustainability, MDPI, vol. 15(6), pages 1-26, March.
    13. 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).
    14. Luca Marrucci & Tiberio Daddi & Fabio Iraldo, 2022. "Do dynamic capabilities matter? A study on environmental performance and the circular economy in European certified organisations," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2641-2657, September.

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