IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i3p1209-d1330670.html
   My bibliography  Save this article

Circular Business Models (CBMs) in Environmental Management—Analysis of Definitions, Typologies and Methods of Creation in Organizations

Author

Listed:
  • Marzena Smol

    (Faculty of Management, AGH University of Science and Technology, Antoniego Gramatyka 10 Str., 30-067 Cracow, Poland)

  • Paulina Marcinek

    (Mineral and Energy Economy Research Institute, Polish Academy of Sciences, Wybickiego 7a Str., 31-261 Cracow, Poland)

  • Joanna Duda

    (Faculty of Management, AGH University of Science and Technology, Antoniego Gramatyka 10 Str., 30-067 Cracow, Poland)

Abstract

A circular economy (CE) is an economic model that involves more sustainable management of raw materials and waste. Implementation of CE assumptions is highly recommended in the form of dedicated CE technologies as well as CE business models, so-called circular business models (CBMs), which are an integral part of environmental management in organizations. Depending on the application and the type of sector or enterprise, CBMs are defined differently, focusing on various areas of raw materials and waste management. In general, they should create added value for the given enterprise that meets the CE assumptions or integrate CE principles with the organization’s business practices. This paper aims to analyze different approaches to CBMs with the use of comparative analysis and desk research methods. The scope of this paper includes a comparative analysis of CBM definitions and their typologies, as well as the basics for creating CBMs in enterprises. Moreover, good practices of implemented CMBs in various enterprises are presented. The general definition of CBM is developed as “a business model that assumes creating, delivering and capturing added value for the consumer while considering the CE principles”. Furthermore, the basics of building CBM using a modified Business Model Canvas are proposed. In general, CBM should consider the key CE assumption, i.e., increased raw material efficiency. In the coming years, a further increase in interest in CBMs dedicated to specific sectors and their areas of activity is expected. Various stakeholders could use them as a benchmark to compare and define the best practices for the successful adoption of CBMs in the future.

Suggested Citation

  • Marzena Smol & Paulina Marcinek & Joanna Duda, 2024. "Circular Business Models (CBMs) in Environmental Management—Analysis of Definitions, Typologies and Methods of Creation in Organizations," Sustainability, MDPI, vol. 16(3), pages 1-25, January.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:3:p:1209-:d:1330670
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/3/1209/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/3/1209/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Levänen, Jarkko & Lyytinen, Tatu & Gatica, Sebastian, 2018. "Modelling the Interplay Between Institutions and Circular Economy Business Models: A Case Study of Battery Recycling in Finland and Chile," Ecological Economics, Elsevier, vol. 154(C), pages 373-382.
    2. van der Hoek, Jan Peter & de Fooij, Heleen & Struker, André, 2016. "Wastewater as a resource: Strategies to recover resources from Amsterdam’s wastewater," Resources, Conservation & Recycling, Elsevier, vol. 113(C), pages 53-64.
    3. Alessandro Muscio & Roberta Sisto, 2020. "Are Agri-Food Systems Really Switching to a Circular Economy Model? Implications for European Research and Innovation Policy," Sustainability, MDPI, vol. 12(14), pages 1-15, July.
    4. Marzena Smol & Paulina Marcinek & Joanna Duda & Dominika Szołdrowska, 2020. "Correction: Smol, M., et al. Importance of Sustainable Mineral Resource Management in Implementing the Circular Economy (CE) Model and the European Green Deal Strategy. Resource 2020, 9 , 55," Resources, MDPI, vol. 9(6), pages 1-3, June.
    5. Savu Rovanto & Max Finne, 2023. "What Motivates Entrepreneurs into Circular Economy Action? Evidence from Japan and Finland," Journal of Business Ethics, Springer, vol. 184(1), pages 71-91, April.
    6. Syed Mithun Ali & Andrea Appolloni & Fausto Cavallaro & Idiano D’Adamo & Assunta Di Vaio & Francesco Ferella & Massimo Gastaldi & Muhammad Ikram & Nallapaneni Manoj Kumar & Michael Alan Martin & Abdul, 2023. "Development Goals towards Sustainability," Sustainability, MDPI, vol. 15(12), pages 1-11, June.
    7. Kirchherr, Julian & Reike, Denise & Hekkert, Marko, 2017. "Conceptualizing the circular economy: An analysis of 114 definitions," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 221-232.
    8. Tom Lahti & Joakim Wincent & Vinit Parida, 2018. "A Definition and Theoretical Review of the Circular Economy, Value Creation, and Sustainable Business Models: Where Are We Now and Where Should Research Move in the Future?," Sustainability, MDPI, vol. 10(8), pages 1-19, August.
    9. Korhonen, Jouni & Honkasalo, Antero & Seppälä, Jyri, 2018. "Circular Economy: The Concept and its Limitations," Ecological Economics, Elsevier, vol. 143(C), pages 37-46.
    10. D’Adamo, Idiano & Falcone, Pasquale Marcello & Huisingh, Donald & Morone, Piergiuseppe, 2021. "A circular economy model based on biomethane: What are the opportunities for the municipality of Rome and beyond?," Renewable Energy, Elsevier, vol. 163(C), pages 1660-1672.
    11. Md Tasbirul Islam & Usha Iyer-Raniga, 2023. "Circular Business Model Value Dimension Canvas: Tool Redesign for Innovation and Validation through an Australian Case Study," Sustainability, MDPI, vol. 15(15), pages 1-47, July.
    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. Juliana Araújo Pereira & Flávio José Simioni & Juliana Ferreira Soares & Jeane de Almeida do Rosário & Eduardo Bertol & Fabio Murilo Padilha Souza & Luiz Moreira Coelho Junior, 2024. "Circular Economy Practices in Biomass-Fired Power Plants in Brazil: An Assessment Using the ReSOLVE Framework," Sustainability, MDPI, vol. 16(21), pages 1-19, October.

    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. Kerem Toker & Ali Görener, 2023. "Evaluation of circular economy business models for SMEs using spherical fuzzy TOPSIS: an application from a developing countries’ perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1700-1741, February.
    2. Arru, Brunella & Furesi, Roberto & Pulina, Pietro & Sau, Paola & Madau, Fabio A., 2022. "The Circular Economy in the Agri-food system: A Performance Measurement of European Countries," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 24(2), September.
    3. Jing Shao & Cedric Aneye & Alyona Kharitonova & Wei Fang, 2023. "Essential innovation capability of producer‐service enterprises towards circular business model: Motivators and barriers," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4548-4567, November.
    4. Leticia Sarmento dos Muchangos, 2022. "Mapping the Circular Economy Concept and the Global South," Circular Economy and Sustainability, Springer, vol. 2(1), pages 71-90, March.
    5. Soni, Vivek & Gnekpe, Christian & Roux, Mélanie & Anand, Rashmi & Vann Yaroson, Emilia & Kumar Banwet, Devinder, 2023. "Adaptive distributed leadership and circular economy adoption by emerging SMEs," Journal of Business Research, Elsevier, vol. 156(C).
    6. Aidana Tleuken & Galym Tokazhanov & Kebir Mohammed Jemal & Ramazan Shaimakhanov & Magzhan Sovetbek & Ferhat Karaca, 2022. "Legislative, Institutional, Industrial and Governmental Involvement in Circular Economy in Central Asia: A Systematic Review," Sustainability, MDPI, vol. 14(13), pages 1-26, July.
    7. Henrike Holwerda & Willem Haanstra & Jan Braaksma, 2024. "Operationalizing the Circular Economy—A Longitudinal Study on Sustained Circular Action," Sustainability, MDPI, vol. 16(14), pages 1-15, July.
    8. Brunella Arru & Roberto Furesi & Pietro Pulina & Paola Sau & Fabio A. Madau, 2022. "The Circular Economy in the Agri-food system: A Performance Measurement of European Countries," Economia agro-alimentare, FrancoAngeli Editore, vol. 24(2), pages 1-35.
    9. 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.
    10. Pina Puntillo, 2023. "Circular economy business models: Towards achieving sustainable development goals in the waste management sector—Empirical evidence and theoretical implications," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 941-954, March.
    11. Monia Niero & Charlotte L. Jensen & Chiara Farné Fratini & Jens Dorland & Michael S. Jørgensen & Susse Georg, 2021. "Is life cycle assessment enough to address unintended side effects from Circular Economy initiatives?," Journal of Industrial Ecology, Yale University, vol. 25(5), pages 1111-1120, October.
    12. Jaroslaw Golebiewski & Josu Takala & Oskar Juszczyk & Nina Drejerska, 2019. "Local contribution to circular economy. A case study of a Polish rural municipality," Economia agro-alimentare, FrancoAngeli Editore, vol. 21(3), pages 771-791.
    13. D. D’Amato, 2021. "Sustainability Narratives as Transformative Solution Pathways: Zooming in on the Circular Economy," Circular Economy and Sustainability, Springer, vol. 1(1), pages 231-242, June.
    14. Graziela Darla Araujo Galvão & Steve Evans & Paulo Sergio Scoleze Ferrer & Marly Monteiro de Carvalho, 2022. "Circular business model: Breaking down barriers towards sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1504-1524, May.
    15. Magdalena Rusch & Josef‐Peter Schöggl & Rupert J. Baumgartner, 2023. "Application of digital technologies for sustainable product management in a circular economy: A review," Business Strategy and the Environment, Wiley Blackwell, vol. 32(3), pages 1159-1174, March.
    16. Amir Latif & Martha Fani Cahyandito & Gemilang Lara Utama, 2023. "Circular Economy Concept at the Micro-Level: A Case Study of Taruna Mukti Farmer Group, Bandung Regency, West Java, Indonesia," Agriculture, MDPI, vol. 13(3), pages 1-14, February.
    17. Aida Hosseinian & Jenni Ylä-Mella & Eva Pongrácz, 2021. "Current Status of Circular Economy Research in Finland," Resources, MDPI, vol. 10(5), pages 1-16, April.
    18. Ivan Deviatkin & Sanna Rousu & Malahat Ghoreishi & Mohammad Naji Nassajfar & Mika Horttanainen & Ville Leminen, 2022. "Implementation of Circular Economy Strategies within the Electronics Sector: Insights from Finnish Companies," Sustainability, MDPI, vol. 14(6), pages 1-11, March.
    19. Ángela Triguero & María C. Cuerva & Francisco J. Sáez‐Martínez, 2022. "Closing the loop through eco‐innovation by European firms: Circular economy for sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2337-2350, July.
    20. Enru Wang & Changhong Miao & Xiaofei Chen, 2022. "Circular Economy and the Changing Geography of International Trade in Plastic Waste," IJERPH, MDPI, vol. 19(22), pages 1-19, November.

    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:16:y:2024:i:3:p:1209-:d:1330670. 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.