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

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  • Ida K. Rovanto
  • Anu Bask

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.

Suggested Citation

  • Ida K. Rovanto & Anu Bask, 2021. "Systemic circular business model application at the company, supply chain and society levels—A view into circular economy native and adopter companies," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1153-1173, February.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:2:p:1153-1173
    DOI: 10.1002/bse.2677
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    5. 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.
    6. Luoma, Päivi & Penttinen, Esko & Tapio, Petri & Toppinen, Anne, 2022. "Future images of data in circular economy for textiles," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    7. Van Hoof, Bart & De Miguel, Carlos J. & Núñez Reyes, Georgina, 2023. "Scaling up circular economy initiatives in Latin America and the Caribbean," Documentos de Proyectos 48835, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    8. Sourabh Jain & Jury Gualandris, 2023. "When does upcycling mitigate climate change? The case of wet spent grains and fruit and vegetable residues in Canada," Journal of Industrial Ecology, Yale University, vol. 27(2), pages 522-534, April.
    9. Carolina Villamil & Jesko Schulte & Sophie Hallstedt, 2022. "Sustainability risk and portfolio management—A strategic scenario method for sustainable product development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1042-1057, March.
    10. 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, vol. 3(1), pages 125-166, March.
    11. Savu Rovanto & Max Finne, 2023. "What Motivates Entrepreneurs into Circular Economy Action? Evidence from Japan and Finland," Journal of Business Ethics, Springer, vol. 184(1), pages 71-91, April.
    12. Thayla Zomer & Tim McAloone & Daniela Pigosso, 2024. "Categorization of manufacturing companies’ readiness profiles for the transition to the circular economy: A multidimensional cluster analysis," Journal of Industrial Ecology, Yale University, vol. 28(2), pages 277-288, April.
    13. Karolina Bähr & Alexander Fliaster, 2023. "The twofold transition: Framing digital innovations and incumbents' value propositions for sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 32(2), pages 920-935, February.
    14. Maryam Hina & Chetna Chauhan & Rajat Sharma & Amandeep Dhir, 2023. "Circular economy business models as pillars of sustainability: Where are we now, and where are we heading?," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6182-6209, December.
    15. Ahmed Zainul Abideen & Jaafar Pyeman & Veera Pandiyan Kaliani Sundram & Ming-Lang Tseng & Shahryar Sorooshian, 2021. "Leveraging Capabilities of Technology into a Circular Supply Chain to Build Circular Business Models: A State-of-the-Art Systematic Review," Sustainability, MDPI, vol. 13(16), pages 1-26, August.
    16. Ming‐Lang Tseng & Hien Minh Ha & Thi Phuong Thuy Tran & Tat‐Dat Bui & Chih‐Cheng Chen & Chun‐Wei Lin, 2022. "Building a data‐driven circular supply chain hierarchical structure: Resource recovery implementation drives circular business strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2082-2106, July.
    17. 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.
    18. Wen-Kuo Chen & Ching-Torng Lin, 2021. "Interrelationship among CE Adoption Obstacles of Supply Chain in the Textile Sector: Based on the DEMATEL-ISM Approach," Mathematics, MDPI, vol. 9(12), pages 1-24, June.
    19. 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).
    20. Laura Montag, 2023. "Roadmap to a Circular Economy by 2030: A Comparative Review of Circular Business Model Visions in Germany and Japan," Sustainability, MDPI, vol. 15(6), pages 1-31, March.
    21. Kirti Nayal & Shashank Kumar & Rakesh D. Raut & Maciel M. Queiroz & Pragati Priyadarshinee & Balkrishna E. Narkhede, 2022. "Supply chain firm performance in circular economy and digital era to achieve sustainable development goals," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1058-1073, March.
    22. 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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