IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v34y2025i7p9169-9187.html

Implementing Circular Business Models for Sustainability Goals: A Systematic Literature Review

Author

Listed:
  • Richard Asante
  • Aurora Dimache
  • Vicky O'Rourke
  • Graham Heaslip
  • Stefan Seuring
  • George Onofrei

Abstract

Circular business model (CBM) has been identified as an effective approach to addressing sustainability issues in the manufacturing industry, yet most firms adopting CBM fail to achieve their sustainability targets. The dynamic and uncertain nature of the industry's environment requires developing dynamic capabilities (ability to adapt to the rapidly changing business environment) to address this CBM theory–practice problem. However, dynamic capabilities that address this research problem are impacted by a firm's institutional environment. Despite this, research that explicitly explores the role of dynamic capabilities and institutional pressure in addressing the CBM theory–practice problems remains missing. The proposed study fills this knowledge gap by developing a theoretical model highlighting the causal relationship between institutional pressure, dynamic capabilities, and CBM strategies. Using Scientific Procedures and Rationales for Systematic Literature Reviews protocol, a contingency analysis of 52 selected articles was conducted. The study identified causal relationships between normative pressure, seize capabilities, and slowing CBM strategies. It also highlighted causal relationships between seize capabilities and CBM strategies. Though the theoretical relationships between institutional pressures and dynamic capabilities exist, the proposed theoretical model extends its boundaries.

Suggested Citation

  • Richard Asante & Aurora Dimache & Vicky O'Rourke & Graham Heaslip & Stefan Seuring & George Onofrei, 2025. "Implementing Circular Business Models for Sustainability Goals: A Systematic Literature Review," Business Strategy and the Environment, Wiley Blackwell, vol. 34(7), pages 9169-9187, November.
    • Handle: RePEc:bla:bstrat:v:34:y:2025:i:7:p:9169-9187
    DOI: 10.1002/bse.70067
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.70067
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.70067?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. Rameshwar Dubey & Angappa Gunasekaran & Stephen J. Childe & Thanos Papadopoulos & Benjamin T. Hazen & David Roubaud, 2018. "Examining top management commitment to TQM diffusion using institutional and upper echelon theories," International Journal of Production Research, Taylor & Francis Journals, vol. 56(8), pages 2988-3006, April.
    2. Snyder, Hannah, 2019. "Literature review as a research methodology: An overview and guidelines," Journal of Business Research, Elsevier, vol. 104(C), pages 333-339.
    3. Ben Jabeur, Sami & Ballouk, Hossein & Ben Arfi, Wissal & Sahut, Jean-Michel, 2023. "Artificial intelligence applications in fake review detection: Bibliometric analysis and future avenues for research," Journal of Business Research, Elsevier, vol. 158(C).
    4. Stefan Gold & Stefan Seuring & Philip Beske, 2010. "Sustainable supply chain management and inter‐organizational resources: a literature review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 17(4), pages 230-245, July.
    5. Paul, Justin & Criado, Alex Rialp, 2020. "The art of writing literature review: What do we know and what do we need to know?," International Business Review, Elsevier, vol. 29(4).
    6. Owais Khan & Tiberio Daddi & Fabio Iraldo, 2020. "Microfoundations of dynamic capabilities: Insights from circular economy business cases," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1479-1493, March.
    7. Chaudhuri, Atanu & Subramanian, Nachiappan & Dora, Manoj, 2022. "Circular economy and digital capabilities of SMEs for providing value to customers: Combined resource-based view and ambidexterity perspective," Journal of Business Research, Elsevier, vol. 142(C), pages 32-44.
    8. Kühl, Carl & Bourlakis, Michael & Aktas, Emel & Skipworth, Heather, 2022. "Product-service systems and circular supply chain practices in UK SMEs: The moderating effect of internal environmental orientation," Journal of Business Research, Elsevier, vol. 146(C), pages 155-165.
    9. Conor McDaid & Amir Hossein Azadnia & George Onofrei & Erfan Babaee Tirkolaee, 2024. "Industry readiness measurement for circular supply chain implementation: an Irish dairy industry perspective," Annals of Operations Research, Springer, vol. 342(1), pages 477-522, November.
    10. Sudusinghe, Jayani Ishara & Seuring, Stefan, 2022. "Supply chain collaboration and sustainability performance in circular economy: A systematic literature review," International Journal of Production Economics, Elsevier, vol. 245(C).
    11. Fehrer, Julia A. & Wieland, Heiko, 2021. "A systemic logic for circular business models," Journal of Business Research, Elsevier, vol. 125(C), pages 609-620.
    12. Abbate, Stefano & Centobelli, Piera & Cerchione, Roberto, 2023. "From Fast to Slow: An Exploratory Analysis of Circular Business Models in the Italian Apparel Industry," International Journal of Production Economics, Elsevier, vol. 260(C).
    13. Patricia van Loon & Luk N. Van Wassenhove, 2020. "Transition to the circular economy: the story of four case companies," International Journal of Production Research, Taylor & Francis Journals, vol. 58(11), pages 3415-3422, June.
    14. Zhongju Liao, 2018. "Institutional pressure, knowledge acquisition and a firm's environmental innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 849-857, November.
    15. Johan Brändström & Amer Jazairy & Erik Roos Lindgreen, 2024. "Barriers to adopting circular business models: A cross‐sectoral analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4331-4350, July.
    16. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    17. Debmalya Mukherjee & Saumyaranjan Sahoo & Satish Kumar, 2023. "Two Decades of International Business and International Management Scholarship on Africa: A Review and Future Directions," Management International Review, Springer, vol. 63(6), pages 863-909, December.
    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.
    19. Leone, Daniele & Cristina Pietronudo, Maria & Gabteni, Heger & Rosaria Carli, Maria, 2023. "Reward-based crowdfunding for building a valuable circular business model," Journal of Business Research, Elsevier, vol. 157(C).
    20. Sami Ben Jabeur & Hossein Ballouk & Wissal Ben Arfi & Jean-Michel Sahut, 2023. "Artificial intelligence applications in fake review detection: Bibliometric analysis and future research directions," Post-Print hal-05238452, HAL.
    21. Fernandez de Arroyabe, J.C. & Arranz, N. & Schumann, M. & Arroyabe, M.F., 2021. "The development of CE business models in firms: The role of circular economy capabilities," Technovation, Elsevier, vol. 106(C).
    Full references (including those not matched with items on IDEAS)

    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. 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).
    2. João M. Lopes & Sofia Gomes & Elisabete Nogueira, 2025. "Pathways to Circularity: Engagement Patterns of European SMEs in the Circular Economy," Business Strategy and the Environment, Wiley Blackwell, vol. 34(3), pages 3848-3864, March.
    3. Joseph Kimaro & Virginie Litaudon & Danni Zhang & Regina Frei, 2026. "Circular Business Models in Retail and Manufacturing: Mechanisms, Drivers, and Barriers," Circular Economy and Sustainability, Springer, vol. 6(2), pages 1-41, April.
    4. Bag, Surajit & Gupta, Shivam & Chan, Hau-Ling & Kumar, Ajay, 2024. "Building smart product-service systems capabilities for circular supply chains in the Industry 4.0 era," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 188(C).
    5. Maria Rosa De Giacomo & Raimund Bleischwitz, 2020. "Business models for environmental sustainability: Contemporary shortcomings and some perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3352-3369, December.
    6. Thanh Tiep Le & Thoi Le Quan Chau, 2026. "Drive sustainable corporate performance with digital transformation: the roles of environmental dynamism, sustainable innovation, and circular business model innovation," Operations Management Research, Springer, vol. 19(1), pages 1-21, March.
    7. Mohammad Fakhrul Islam & Mohammad Imran Hossain & Md. Rashed & Md. Naeemur Rahman & Mohammad Imtiaz Hossain & Md. Faisal-E-Alam, 2025. "Strategizing for Sustainability: Examining the Dynamic Interplay of the Circular Economy, Green Technology Innovation, and Green Performance," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 26(4), pages 935-961, December.
    8. 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.
    9. Julia Köhler & Sönnich Dahl Sönnichsen & Philip Beske‐Jansen, 2022. "Towards a collaboration framework for circular economy: The role of dynamic capabilities and open innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2700-2713, September.
    10. 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.
    11. Scheuer, Luca Joachim & Thaler, Julia, 2023. "How do dynamic capabilities affect performance? A systematic review of mediators," European Management Journal, Elsevier, vol. 41(6), pages 914-931.
    12. Cecilia Correggi & Paolo Di Toma & Stefano Ghinoi, 2024. "Rethinking dynamic capabilities in light of sustainability: A bibliometric analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 7990-8016, December.
    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. Schultz, Felix Carl & Valentinov, Vladislav & Pies, Ingo, 2025. "The Business Case for Circular Economy: A Co‐Evolutionary Perspective for Integrating Moral Cases Into Circular Economy Business Cases," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 32(4), pages 4329-4342.
    15. Roberta De Angelis, 2022. "Circular economy business models as resilient complex adaptive systems," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2245-2255, July.
    16. Felix Carl Schultz & Vladislav Valentinov & Ingo Pies, 2025. "The Business Case for Circular Economy: A Co‐Evolutionary Perspective for Integrating Moral Cases Into Circular Economy Business Cases," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(4), pages 4329-4342, July.
    17. Rosa M. Batista-Canino & Silvia Sosa-Cabrera & Pino Medina-Brito & Lidia Santana-Hernández, 2025. "Scientific Progress on Entrepreneurship in the Circular Economy: A Scientometric Analysis," Sustainability, MDPI, vol. 17(2), pages 1-25, January.
    18. Daniel Sánchez Martínez & Jesús Lavín Verastegui & Norma Angélica Pedraza Melo & Javier Jasso, 2025. "Capacidades dinámicas y economía circular en las organizaciones: un análisis bibliométrico," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 20(1), pages 1-33, Enero - M.
    19. Amr S. Abdallah & Hala Amin & Mohammed Abdelghany & Ahmed A. Elamer, 2025. "Antecedents and consequences of intellectual capital: a systematic review, integrated framework, and agenda for future research," Management Review Quarterly, Springer, vol. 75(4), pages 3067-3118, December.
    20. Abdollah Mohammadparst Tabas & Mohsin Abdur Rehman & Fatima Khitous & Andrea Urbinati, 2025. "Stakeholder and customer engagement in circular economy ecosystems: A systematic literature review and research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 34(1), pages 402-416, January.

    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:34:y:2025:i:7:p:9169-9187. 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.