IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v30y2021i6p2814-2829.html
   My bibliography  Save this article

From circular business models to circular business ecosystems

Author

Listed:
  • Wisdom Kanda
  • Martin Geissdoerfer
  • Olof Hjelm

Abstract

The circular economy aims to minimize resource inputs and waste and emission outputs of the economy and its organizational subsystems. This can benefit both financial and sustainability performance of companies. To analyze industrial implementation of the concept, the prevalent unit of analysis on the firm level is currently the circular business model. Our investigation of nine Swedish biogas companies and one branch organization indicates a range of conceptual shortcomings that challenges this approach. Our comparative case analysis points towards circular ecosystems being a more appropriate concept to describe the high level of coordination between different stakeholders necessary to implement circular systems. This increases the suitability to analyze, plan, and communicate circular economy systems on an organizational level, especially if value chain integration is low. An ecosystem perspective can thus support innovation and entrepreneurship in the context of the circular economy.

Suggested Citation

  • Wisdom Kanda & Martin Geissdoerfer & Olof Hjelm, 2021. "From circular business models to circular business ecosystems," Business Strategy and the Environment, Wiley Blackwell, vol. 30(6), pages 2814-2829, September.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:6:p:2814-2829
    DOI: 10.1002/bse.2895
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.2895
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.2895?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Luca Fraccascia & Ilaria Giannoccaro & Abhishek Agarwal & Erik G. Hansen, 2019. "Business models for the circular economy: Opportunities and challenges," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 430-432, February.
    2. Antonella Zucchella & Pietro Previtali, 2019. "Circular business models for sustainable development: A “waste is food” restorative ecosystem," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 274-285, February.
    3. Ernst J. Prosman & Brian V. Wæhrens & Giacomo Liotta, 2017. "Closing Global Material Loops: Initial Insights into Firm-Level Challenges," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 641-650, June.
    4. Christensen, Clayton M. & Rosenbloom, Richard S., 1995. "Explaining the attacker's advantage: Technological paradigms, organizational dynamics, and the value network," Research Policy, Elsevier, vol. 24(2), pages 233-257, March.
    5. Florian Lüdeke‐Freund & Stefan Gold & Nancy M. P. Bocken, 2019. "A Review and Typology of Circular Economy Business Model Patterns," Journal of Industrial Ecology, Yale University, vol. 23(1), pages 36-61, February.
    6. Mateusz Lewandowski, 2016. "Designing the Business Models for Circular Economy—Towards the Conceptual Framework," Sustainability, MDPI, vol. 8(1), pages 1-28, January.
    7. Gomes, Leonardo Augusto de Vasconcelos & Facin, Ana Lucia Figueiredo & Salerno, Mario Sergio & Ikenami, Rodrigo Kazuo, 2018. "Unpacking the innovation ecosystem construct: Evolution, gaps and trends," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 30-48.
    8. Thomas Magnusson & Hans Andersson & Mikael Ottosson, 2019. "Industrial ecology and the boundaries of the manufacturing firm," Journal of Industrial Ecology, Yale University, vol. 23(5), pages 1211-1225, October.
    9. Ioannis Siskos & Luk N. Van Wassenhove, 2017. "Synergy Management Services Companies: A New Business Model for Industrial Park Operators," Journal of Industrial Ecology, Yale University, vol. 21(4), pages 802-814, August.
    10. Steve Evans & Doroteya Vladimirova & Maria Holgado & Kirsten Van Fossen & Miying Yang & Elisabete A. Silva & Claire Y. Barlow, 2017. "Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models," Business Strategy and the Environment, Wiley Blackwell, vol. 26(5), pages 597-608, July.
    11. Nancy M. P. Bocken & Elsa A. Olivetti & Jonathan M. Cullen & José Potting & Reid Lifset, 2017. "Taking the Circularity to the Next Level: A Special Issue on the Circular Economy," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 476-482, June.
    12. Marian R. Chertow, 2007. "“Uncovering” Industrial Symbiosis," Journal of Industrial Ecology, Yale University, vol. 11(1), pages 11-30, January.
    13. Fenna Blomsma & Geraldine Brennan, 2017. "The Emergence of Circular Economy: A New Framing Around Prolonging Resource Productivity," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 603-614, June.
    14. Erik G. Hansen & Friedrich Grosse-Dunker & Ralf Reichwald, 2009. "Sustainability Innovation Cube — A Framework To Evaluate Sustainability-Oriented Innovations," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 13(04), pages 683-713.
    15. Korhonen, Jouni & Honkasalo, Antero & Seppälä, Jyri, 2018. "Circular Economy: The Concept and its Limitations," Ecological Economics, Elsevier, vol. 143(C), pages 37-46.
    16. Lantz, Mikael & Svensson, Mattias & Bjornsson, Lovisa & Borjesson, Pal, 2007. "The prospects for an expansion of biogas systems in Sweden--Incentives, barriers and potentials," Energy Policy, Elsevier, vol. 35(3), pages 1830-1843, March.
    17. Piero Morseletto, 2020. "Restorative and regenerative: Exploring the concepts in the circular economy," Journal of Industrial Ecology, Yale University, vol. 24(4), pages 763-773, August.
    18. Marcus Linder & Mats Williander, 2017. "Circular Business Model Innovation: Inherent Uncertainties," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 182-196, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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. Adriana Neligan & Rupert J. Baumgartner & Martin Geissdoerfer & Josef‐Peter Schöggl, 2023. "Circular disruption: Digitalisation as a driver of circular economy business models," Business Strategy and the Environment, Wiley Blackwell, vol. 32(3), pages 1175-1188, March.
    4. Denise Reike & Marko P. Hekkert & Simona O. Negro, 2023. "Understanding circular economy transitions: The case of circular textiles," Business Strategy and the Environment, Wiley Blackwell, vol. 32(3), pages 1032-1058, March.
    5. Gomes, Leonardo Augusto de Vasconcelos & Faria, Aline Mariane de & Braz, Antonio Carlos & Mello, Adriana Marotti de & Borini, Felipe Mendes & Ometto, Aldo Roberto, 2023. "Circular ecosystem management: Orchestrating ecosystem value proposition and configuration," International Journal of Production Economics, Elsevier, vol. 256(C).
    6. 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).
    7. Yuxi Dai & Steven Day & Donato Masi & Ismail Gölgeci, 2022. "A synthesised framework of eco‐industrial park transformation and stakeholder interaction," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3122-3151, November.
    8. Valery Chistov & Nekane Aramburu & María Eugenia Fabra Florit & Iñaki Peña‐Legazkue & Pauline Weritz, 2023. "Sustainability orientation and firm growth as ventures mature," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5314-5331, December.
    9. Gomes, Leonardo Augusto de Vasconcelos & Castillo-Ospina, Danika A. & Facin, Ana Lucia Figueiredo & Ferreira, Camila dos Santos & Ometto, Aldo Roberto, 2023. "Circular ecosystem innovation portfolio management," Technovation, Elsevier, vol. 124(C).
    10. Mendoza, Joan Manuel F. & Gallego-Schmid, Alejandro & Velenturf, Anne P.M. & Jensen, Paul D. & Ibarra, Dorleta, 2022. "Circular economy business models and technology management strategies in the wind industry: Sustainability potential, industrial challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 163(C).
    11. 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.
    12. Anne Ratsimandresy & Joe Miemczyk, 2023. "Conceptualising Collaborations beyond Industrial Boundaries: A Literature Review and a Theoretical Proposition to Understand Cross-Industrial Collaborations in the Circular Supply Network," Sustainability, MDPI, vol. 15(11), pages 1-20, May.
    13. Stephanie Lang & Giulia Minnucci & Matthias Mueller & Michael P. Schlaile, 2023. "The Role of Consumers in Business Model Innovations for a Sustainable Circular Bioeconomy," Sustainability, MDPI, vol. 15(12), pages 1-19, June.
    14. Lukas Alexander Benz, 2022. "Critical Success Factors for Circular Business Model Innovation from the Perspective of the Sustainable Development Goals," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    15. Felicitas Pietrulla, 2022. "Private Firm Support for Circular Economy Regulation in the EU Policy Context," Sustainability, MDPI, vol. 14(14), pages 1-29, July.
    16. 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.
    17. Julian Kirchherr & Andrea Urbinati & Kris Hartley, 2023. "Circular economy: A new research field?," Journal of Industrial Ecology, Yale University, vol. 27(5), pages 1239-1251, October.
    18. Lorena Espina-Romero & Jesús Guerrero-Alcedo & José Gregorio Noroño Sánchez & Angélica Ochoa-Díaz, 2022. "What Are the Topics That Business Ecosystems Navigate? Updating of Scientific Activity and Future Research Agenda," Sustainability, MDPI, vol. 14(23), pages 1-14, December.
    19. Virginie Litaudon & Yiran Chen, 2023. "Transforming existing local ecosystems to circular economy ecosystems for plastics: The case of the PlastiCity ecosystem," Journal of Industrial Ecology, Yale University, vol. 27(5), pages 1406-1419, October.
    20. David Meyer & Nils Schaupensteiner & Johannes Riquel, 2024. "Business Models and Ecosystems in the Circular Economy Using the Example of Battery Second Use Storage Systems," Sustainability, MDPI, vol. 16(5), pages 1-25, February.
    21. 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.
    22. Sanjay Chaudhary & Puneet Kaur & Hind Alofaysan & Jantje Halberstadt & Amandeep Dhir, 2023. "Connecting the dots? Entrepreneurial ecosystems and sustainable entrepreneurship as pathways to sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5935-5951, December.
    23. Sascha P. Klein & Verena Liszt‐Rohlf & Patrick Spieth, 2023. "Value‐based bricolage: Resource mobilization in the circular economy," Journal of Industrial Ecology, Yale University, vol. 27(6), pages 1476-1487, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Armaghan Chizaryfard & Paolo Trucco & Cali Nuur, 2021. "The transformation to a circular economy: framing an evolutionary view," Journal of Evolutionary Economics, Springer, vol. 31(2), pages 475-504, April.
    2. Chembessi Chedrak & Gohoungodji Paulin & Juste Rajaonson, 2023. "“A fine wine, better with age”: Circular economy historical roots and influential publications: A bibliometric analysis using Reference Publication Year Spectroscopy (RPYS)," Journal of Industrial Ecology, Yale University, vol. 27(6), pages 1593-1612, December.
    3. Gilbert Silvius & Aydan Ismayilova & Vicente Sales-Vivó & Micol Costi, 2021. "Exploring Barriers for Circularity in the EU Furniture Industry," Sustainability, MDPI, vol. 13(19), pages 1-25, October.
    4. Erik G. Hansen & Ferdinand Revellio, 2020. "Circular value creation architectures: Make, ally, buy, or laissez‐faire," Journal of Industrial Ecology, Yale University, vol. 24(6), pages 1250-1273, December.
    5. 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.
    6. Piera Centobelli & Roberto Cerchione & Davide Chiaroni & Pasquale Del Vecchio & Andrea Urbinati, 2020. "Designing business models in circular economy: A systematic literature review and research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 29(4), pages 1734-1749, May.
    7. Eleonora Annunziata & Francesco Rizzi & Tiberio Daddi & Marco Frey, 2019. "Business models for interfirm energy cooperation in industrial parks: A possible taxonomy," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(2), pages 133-148.
    8. Nancy Bocken & Lars Strupeit & Katherine Whalen & Julia Nußholz, 2019. "A Review and Evaluation of Circular Business Model Innovation Tools," Sustainability, MDPI, vol. 11(8), pages 1-25, April.
    9. María Jesús Ávila-Gutiérrez & Alejandro Martín-Gómez & Francisco Aguayo-González & Juan Ramón Lama-Ruiz, 2020. "Eco-Holonic 4.0 Circular Business Model to Conceptualize Sustainable Value Chain towards Digital Transition," Sustainability, MDPI, vol. 12(5), pages 1-32, March.
    10. Gabi Försterling & Ronald Orth & Benjamin Gellert, 2023. "Transition to a Circular Economy in Europe through New Business Models: Barriers, Drivers, and Policy Making," Sustainability, MDPI, vol. 15(10), pages 1-40, May.
    11. Marlin Hoffman & Catherina J. Schenck & Frederick Herbst, 2022. "Exploring the Intersection Where Business Models, a Circular Economy and Sustainability Meet in the Waste Economy: A Scoping Review," Sustainability, MDPI, vol. 14(6), pages 1-14, March.
    12. Raphaëlle Stewart & Monia Niero, 2018. "Circular economy in corporate sustainability strategies: A review of corporate sustainability reports in the fast‐moving consumer goods sector," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 1005-1022, November.
    13. Animesh Ghosh & Prabha Bhola & Uthayasankar Sivarajah, 2022. "Emerging Associates of the Circular Economy: Analysing Interactions and Trends by a Mixed Methods Systematic Review," Sustainability, MDPI, vol. 14(16), pages 1-41, August.
    14. Temmes, Armi & Peck, Philip, 2020. "Do forest biorefineries fit with working principles of a circular bioeconomy? A case of Finnish and Swedish initiatives," Forest Policy and Economics, Elsevier, vol. 110(C).
    15. Figge, Frank & Thorpe, Andrea Stevenson & Givry, Philippe & Canning, Louise & Franklin-Johnson, Elizabeth, 2018. "Longevity and Circularity as Indicators of Eco-Efficient Resource Use in the Circular Economy," Ecological Economics, Elsevier, vol. 150(C), pages 297-306.
    16. Phil Brown & Nancy Bocken & Ruud Balkenende, 2020. "How Do Companies Collaborate for Circular Oriented Innovation?," Sustainability, MDPI, vol. 12(4), pages 1-21, February.
    17. Luca Fraccascia & Ilaria Giannoccaro & Abhishek Agarwal & Erik G. Hansen, 2019. "Business models for the circular economy: Opportunities and challenges," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 430-432, February.
    18. Mura, Rita & Vicentini, Francesca & Botti, Ludovico Maria & Chiriacò, Maria Vincenza, 2023. "Economic and environmental outcomes of a sustainable and circular approach: Case study of an Italian wine-producing firm," Journal of Business Research, Elsevier, vol. 154(C).
    19. Omar Alhawari & Usama Awan & M. Khurrum S. Bhutta & M. Ali Ülkü, 2021. "Insights from Circular Economy Literature: A Review of Extant Definitions and Unravelling Paths to Future Research," Sustainability, MDPI, vol. 13(2), pages 1-22, January.
    20. 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.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:30:y:2021:i:6:p:2814-2829. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.