IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i3p739-d135220.html
   My bibliography  Save this article

Circular Business Model Challenges and Lessons Learned—An Industrial Perspective

Author

Listed:
  • Pejvak Oghazi

    (School of Social Sciences, Sodertorn University, 141 89 Stockholm, Sweden)

  • Rana Mostaghel

    (Marketing Department, Linnaeus University, 351 95 Vaxjo, Sweden)

Abstract

Both practitioners and researchers are concerned about resource deficiencies on the planet earth and agree that circular business models (CBMs) represent solutions to move towards zero waste, improving environmental impacts and increasing economic profit. Despite all of the benefits of CBMs, the implications are not widely available, and failure rates are high. Thus, there is a need to identify the obstacles that stand in the way of CBM transition. This paper aims to identify the primary challenges of CBMs. Multiple case studies are employed, incorporating six companies and data gleaned from 17 in-depth interviews. Theoretical and managerial implications are described at the end of the study.

Suggested Citation

  • Pejvak Oghazi & Rana Mostaghel, 2018. "Circular Business Model Challenges and Lessons Learned—An Industrial Perspective," Sustainability, MDPI, vol. 10(3), pages 1-19, March.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:3:p:739-:d:135220
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/3/739/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/3/739/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Vasileios Rizos & Arno Behrens & Wytze Van der Gaast & Erwin Hofman & Anastasia Ioannou & Terri Kafyeke & Alexandros Flamos & Roberto Rinaldi & Sotiris Papadelis & Martin Hirschnitz-Garbers & Corrado , 2016. "Implementation of Circular Economy Business Models by Small and Medium-Sized Enterprises (SMEs): Barriers and Enablers," Sustainability, MDPI, vol. 8(11), pages 1-18, November.
    2. Julia L. K. Nußholz, 2017. "Circular Business Models: Defining a Concept and Framing an Emerging Research Field," Sustainability, MDPI, vol. 9(10), pages 1-16, October.
    3. Vandermerwe, Sandra & Rada, Juan, 1988. "Servitization of business: Adding value by adding services," European Management Journal, Elsevier, vol. 6(4), pages 314-324, December.
    4. Arnold Tukker, 2004. "Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 246-260, July.
    5. Nancy M. P. Bocken & Paavo Ritala & Pontus Huotari, 2017. "The Circular Economy: Exploring the Introduction of the Concept Among S&P 500 Firms," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 487-490, June.
    6. Beattie, Vivien & Smith, Sarah Jane, 2013. "Value creation and business models: Refocusing the intellectual capital debate," The British Accounting Review, Elsevier, vol. 45(4), pages 243-254.
    7. Liu, Chia-Ling (Eunice) & Zhang, Yingying, 2014. "Learning process and capability formation in cross-border buyer–supplier relationships: A qualitative case study of Taiwanese technological firms," International Business Review, Elsevier, vol. 23(4), pages 718-730.
    8. Meyer Haggège & Caroline Gauthier & Charles-Clemens Rüling, 2017. "Business model performance: five key drivers," Post-Print hal-01592049, HAL.
    9. Genovese, Andrea & Acquaye, Adolf A. & Figueroa, Alejandro & Koh, S.C. Lenny, 2017. "Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications," Omega, Elsevier, vol. 66(PB), pages 344-357.
    10. Leen Gorissen & Karl Vrancken & Saskia Manshoven, 2016. "Transition Thinking and Business Model Innovation–Towards a Transformative Business Model and New Role for the Reuse Centers of Limburg, Belgium," Sustainability, MDPI, vol. 8(2), pages 1-23, January.
    11. Mateusz Lewandowski, 2016. "Designing the Business Models for Circular Economy—Towards the Conceptual Framework," Sustainability, MDPI, vol. 8(1), pages 1-28, January.
    12. Meyer Haggège & Caroline Gauthier & Charles-Clemens Rüling, 2017. "Business model performance: five key drivers," Grenoble Ecole de Management (Post-Print) hal-01592049, HAL.
    13. Nizar Abdelkafi & Sergiy Makhotin & Thorsten Posselt, 2013. "Business Model Innovations For Electric Mobility — What Can Be Learned From Existing Business Model Patterns?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-41.
    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. Johannes Matschewsky, 2019. "Unintended Circularity?—Assessing a Product-Service System for its Potential Contribution to a Circular Economy," Sustainability, MDPI, vol. 11(10), pages 1-27, May.
    2. 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.
    3. 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.
    4. Vinit Parida & Joakim Wincent, 2019. "Why and how to compete through sustainability: a review and outline of trends influencing firm and network-level transformation," International Entrepreneurship and Management Journal, Springer, vol. 15(1), pages 1-19, March.
    5. Mohamad Kaddoura & Marianna Lena Kambanou & Anne-Marie Tillman & Tomohiko Sakao, 2019. "Is Prolonging the Lifetime of Passive Durable Products a Low-Hanging Fruit of a Circular Economy? A Multiple Case Study," Sustainability, MDPI, vol. 11(18), pages 1-22, September.
    6. Alessandro Gandolfo & Lorenzo Lupi, 2021. "Circular economy, the transition of an incumbent focal firm: How to successfully reconcile environmental and economic sustainability?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3297-3308, November.
    7. Julian Lauten-Weiss & Stephan Ramesohl, 2021. "The Circular Business Framework for Building, Developing and Steering Businesses in the Circular Economy," Sustainability, MDPI, vol. 13(2), pages 1-14, January.
    8. Claudia Aparecida De Mattos & Thiago Lourenço Meira De Albuquerque, 2018. "Enabling Factors and Strategies for the Transition Toward a Circular Economy (CE)," Sustainability, MDPI, vol. 10(12), pages 1-18, December.
    9. 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.
    10. repec:aud:audfin:v:20:y:2018:i:48:p:356 is not listed on IDEAS
    11. 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.
    12. 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.
    13. Donato Masi & Steven Day & Janet Godsell, 2017. "Supply Chain Configurations in the Circular Economy: A Systematic Literature Review," Sustainability, MDPI, vol. 9(9), pages 1-22, September.
    14. Friedrich A. Halstenberg & Kai Lindow & Rainer Stark, 2019. "Leveraging Circular Economy through a Methodology for Smart Service Systems Engineering," Sustainability, MDPI, vol. 11(13), pages 1-36, June.
    15. Karel Diéguez-Santana & Liliana B. Sarduy-Pereira & Neyfe Sablón-Cossío & Horacio Bautista-Santos & Fabiola Sánchez-Galván & Sebastiana del Monserrate Ruíz Cedeño, 2022. "Evaluation of the Circular Economy in a Pitahaya Agri-Food Chain," Sustainability, MDPI, vol. 14(5), pages 1-17, March.
    16. Arash Najmaei & Zahra Sadeghinejad, 2023. "Green and sustainable business models: historical roots, growth trajectory, conceptual architecture and an agenda for future research—A bibliometric review of green and sustainable business models," Scientometrics, Springer;Akadémiai Kiadó, vol. 128(2), pages 957-999, February.
    17. Mechthild Donner & Ivana Radić, 2021. "Innovative circular business models in the olive oil sector for sustainable mediterranean agrifood systems," Post-Print hal-03158870, HAL.
    18. Rizos, Vasileios & Tuokko, Katja & Behrens, Arno, 2017. "The Circular Economy: A review of definitions, processes and impacts," CEPS Papers 12440, Centre for European Policy Studies.
    19. S.M. Mizanur Rahman & Junbeum Kim & Gilles Lerondel & Youcef Bouzidi & Laure Clerget, 2019. "Value Retention Options in Circular Economy: Issues and Challenges of LED Lamp Preprocessing," Sustainability, MDPI, vol. 11(17), pages 1-20, August.
    20. Ion Ionascu & Mihaela Iona?cu, 2018. "Business Models for Circular Economy and Sustainable Development: the Case of Lease Transactions," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(48), pages 356-356.
    21. 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.

    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:gam:jsusta:v:10:y:2018:i:3:p:739-:d:135220. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.