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A Systematic Literature Review on the Transition to Circular Business Models for Small and Medium-Sized Enterprises (SMEs)

Author

Listed:
  • Swee Kuik

    (School of Business and Law, College of Business, Central Queensland University, Brisbane, QLD 4072, Australia)

  • Akhil Kumar

    (Smeal College of Business, Pennsylvania State University, University Park, PA 16802, USA)

  • Li Diong

    (Faculty of Business, School of Commerce, University of Southern Queensland, Toowoomba, QLD 4350, Australia)

  • Joowon Ban

    (School of Business and Law, College of Business, Central Queensland University, Brisbane, QLD 4072, Australia)

Abstract

The transition of a business to a circular business model (CBM) calls for significant and ongoing shifts in different business management models and strategies. However, there is a lack of research focused on the technological, financial, societal, and institutional influences on the CBM transition in small and/or medium-sized enterprises (SMEs). To address this gap, our study develops a theoretical framework for the transition towards CBM. We conducted a systematic literature review with the objective of determining the relationships among technological, financial, societal, and institutional influences for CBMs. Following this, we then established a conceptual framework that comprises these four key influences for a transition plan in the context of an innovative business model with a focus on the value proposition, value creation, and value delivery. An illustrative case example of the manufacturing industry for the transition plan to CBM was presented as well. The proposed framework is designed to lead the shift towards circular economy-oriented business models that aim to promote sustainability in business. In addition, we uncovered several potential avenues for further investigation. We expect the framework towards both contribute to the expansion of the existing body of research in the field and provide business practitioners with guidelines on the CBMs’ transition for SMEs.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:12:p:9352-:d:1167698
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    References listed on IDEAS

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    Cited by:

    1. Swee Kuik, 2023. "Advances in the Supply Chain and Circular Economy towards Sustainability," Sustainability, MDPI, vol. 15(16), pages 1-4, August.

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