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Circular business model implementation: A capability development case study from the manufacturing industry

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  • Wiebke Reim
  • David Sjödin
  • Vinit Parida

Abstract

Circular business models (CBMs) have huge potential to deliver economic, social, and environmental benefits, but CBMs have yet to be implemented widely in industrial settings. One reason is that they are often presented as one‐size‐fits‐all solutions, but this is misplaced because product‐specific criteria and company capabilities determine the correct choice and implementation of CBMs. Therefore, the purpose of this paper is to investigate how CBM selection and capability development facilitates the implementation of CBMs. For this purpose, we have adopted a qualitative research approach and undertaken 25 explorative interviews in three large Swedish manufacturing companies. In this paper, a CBM implementation framework consisting of two parts has been developed. The first part addresses the choice of the appropriate CBM based on tactical configurations. The second part provides a capability development path by explicating underlying routines that need to be progressively developed in order to move smoothly to more advanced CBMs.

Suggested Citation

  • Wiebke Reim & David Sjödin & Vinit Parida, 2021. "Circular business model implementation: A capability development case study from the manufacturing industry," Business Strategy and the Environment, Wiley Blackwell, vol. 30(6), pages 2745-2757, September.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:6:p:2745-2757
    DOI: 10.1002/bse.2891
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    1. Roberta De Angelis & Robert Morgan & Luigi M. De Luca, 2023. "Open strategy and dynamic capabilities: A framework for circular economy business models research," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4861-4873, November.
    2. Qinglan Liu & Adriana Hofmann Trevisan & Miying Yang & Janaina Mascarenhas, 2022. "A framework of digital technologies for the circular economy: Digital functions and mechanisms," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2171-2192, July.
    3. Ingvild Reine Assmann & Francesco Rosati & Sandra Naomi Morioka, 2023. "Determinants of circular business model adoption—A systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6008-6028, December.
    4. Sjödin, David & Parida, Vinit & Kohtamäki, Marko, 2023. "Artificial intelligence enabling circular business model innovation in digital servitization: Conceptualizing dynamic capabilities, AI capacities, business models and effects," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    5. Ramanathan, Usha & He, Qile & Subramanian, Nachiappan & Gunasekaran, Angappa & Sarpong, David, 2023. "Collaborative closed-loop supply chain framework for sustainable manufacturing: Evidence from the Indian packaging industry," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    6. Giulia Goffetti & Daniel Böckin & Henrikke Baumann & Anne‐Marie Tillman & Thomas Zobel, 2022. "Towards sustainable business models with a novel life cycle assessment method," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2019-2035, July.
    7. Luca Fraccascia & Ilaria Giannoccaro & Abhishek Agarwal & Erik G. Hansen, 2021. "Business models for the circular economy: Empirical advances and future directions," Business Strategy and the Environment, Wiley Blackwell, vol. 30(6), pages 2741-2744, September.
    8. 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.
    9. Polina Baranova, 2022. "Environmental capability development in a multi‐stakeholder network setting: Dynamic learning through multi‐stakeholder interactions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3406-3420, November.
    10. Castro-Lopez, Adrian & Iglesias, Victor & Santos-Vijande, María Leticia, 2023. "Organizational capabilities and institutional pressures in the adoption of circular economy," Journal of Business Research, Elsevier, vol. 161(C).
    11. Fenna Blomsma & Mike Tennant & Ritsuko Ozaki, 2023. "Making sense of circular economy: Understanding the progression from idea to action," Business Strategy and the Environment, Wiley Blackwell, vol. 32(3), pages 1059-1084, March.
    12. Anna Wójcik-Karpacz & Jarosław Karpacz & Piotr Brzeziński & Anna Pietruszka-Ortyl & Bernard Ziębicki, 2023. "Barriers and Drivers for Changes in Circular Business Models in a Textile Recycling Sector: Results of Qualitative Empirical Research," Energies, MDPI, vol. 16(1), pages 1-24, January.
    13. 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.
    14. Florian Hofmann & Dodo zu Knyphausen‐Aufseß, 2022. "Circular business model experimentation capabilities—A case study approach," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2469-2488, July.

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