IDEAS home Printed from https://ideas.repec.org/a/spr/circec/v1y2021i1d10.1007_s43615-021-00026-z.html
   My bibliography  Save this article

Business Model Experimentation for the Circular Economy: Definition and Approaches

Author

Listed:
  • Nancy M. P. Bocken

    (Maastricht University
    Lund University, IIIEE)

  • Ilka Weissbrod

    (Leuphana University of Lüneburg, CSM)

  • Maria Antikainen

    (VTT Technical Research Centre of Finland)

Abstract

Business model experimentation has been identified as a key driver for business competitiveness but is underexplored in the sustainability and circular economy spheres. What is business model experimentation for the circular economy? This study follows a two-step approach: a literature analysis followed by a qualitative practitioner study. Based on these, circular business model experimentation is defined as an iterative approach to develop and test circular value propositions in a real-life context with customers and stakeholders, starting with a shared goal. It involves rapid learning based on empirical data to provide evidence on the viability of circular value propositions. Iterations involve increased complexity of experiments. There is a learning focus on initiating wider transitions, such as transforming consumer behaviours for the circular economy. We visualise the emerging research landscape, including research streams from business, transitions, engineering, and design. Practically, we illuminate how practitioners view the concept and current experimentation tools and approaches.

Suggested Citation

  • Nancy M. P. Bocken & Ilka Weissbrod & Maria Antikainen, 2021. "Business Model Experimentation for the Circular Economy: Definition and Approaches," Circular Economy and Sustainability, Springer, vol. 1(1), pages 49-81, June.
    • Handle: RePEc:spr:circec:v:1:y:2021:i:1:d:10.1007_s43615-021-00026-z
    DOI: 10.1007/s43615-021-00026-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43615-021-00026-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43615-021-00026-z?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cooper, Robert G., 1990. "Stage-gate systems: A new tool for managing new products," Business Horizons, Elsevier, vol. 33(3), pages 44-54.
    2. Katja Fleischmann, 2019. "Design-led innovation and Circular Economy practices in regional Queensland," Local Economy, London South Bank University, vol. 34(4), pages 382-402, June.
    3. 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.
    4. Yazan, Devrim Murat & Claudio Garavelli, A. & Messeni Petruzzelli, Antonio & Albino, Vito, 2011. "The effect of spatial variables on the economic and environmental performance of bioenergy production chains," International Journal of Production Economics, Elsevier, vol. 131(1), pages 224-233, May.
    5. Bauwens, Thomas & Hekkert, Marko & Kirchherr, Julian, 2020. "Circular futures: What Will They Look Like?," Ecological Economics, Elsevier, vol. 175(C).
    6. Neva Bojovic & Valérie Sabatier & Emmanuel Coblence, 2019. "Becoming Through Doing: How Experimental Spaces Enable Organizational Identity Work," Grenoble Ecole de Management (Post-Print) halshs-02376220, HAL.
    7. Smith, Adrian & Raven, Rob, 2012. "What is protective space? Reconsidering niches in transitions to sustainability," Research Policy, Elsevier, vol. 41(6), pages 1025-1036.
    8. Luigi Cembalo & Alessia Lombardi & Stefano Pascucci & Domenico Dentoni & Giuseppina Migliore & Fabio Verneau & Giorgio Schifani, 2015. "“Rationally Local”: Consumer Participation in Alternative Food Chains," Agribusiness, John Wiley & Sons, Ltd., vol. 31(3), pages 330-352, June.
    9. Gambardella, Alfonso & Camuffo, Arnaldo & Cordova, Alessandro, 2017. "A Scientific Approach to Entrepreneurial Decision-Making: Evidence from a Randomized Control Trial," CEPR Discussion Papers 12421, C.E.P.R. Discussion Papers.
    10. 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.
    11. Neva Bojovic & Corine Genet & Valerie Sabatier, 2018. "Learning, signaling, and convincing: The role of experimentation in the business modeling process," Post-Print hal-01591698, HAL.
    12. Adnane Kendel & Nathalie Lazaric, 2015. "The diffusion of smart meters in France: A discussion of the empirical evidence and the implications for smart cities," Post-Print halshs-01246427, HAL.
    13. Liao, Fanchao & Molin, Eric & Timmermans, Harry & van Wee, Bert, 2018. "The impact of business models on electric vehicle adoption: A latent transition analysis approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 531-546.
    14. Huijben, J.C.C.M. & Verbong, G.P.J., 2013. "Breakthrough without subsidies? PV business model experiments in the Netherlands," Energy Policy, Elsevier, vol. 56(C), pages 362-370.
    15. Yazan, Devrim Murat & Garavelli, A. Claudio & Petruzzelli, Antonio Messeni & Albino, Vito, 2011. "Corrigendum to "The effect of spatial variables on the economic and environmental performance of bioenergy production chains" [Int. J. Prod. Econ. 131 (2011) 224-233]," International Journal of Production Economics, Elsevier, vol. 132(2), pages 328-328, August.
    16. Bruno Faivre d'Arcier & Yveline Lecler, 2014. "Promoting next generation vehicles in Japan: the smart communities and their experimentations," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 14(3/4), pages 324-346.
    17. Francesca Torrieri & Marina Fumo & Michele Sarnataro & Gigliola Ausiello, 2019. "An Integrated Decision Support System for the Sustainable Reuse of the Former Monastery of “Ritiro del Carmine” in Campania Region," Sustainability, MDPI, vol. 11(19), pages 1-21, September.
    18. Sengers, Frans & Wieczorek, Anna J. & Raven, Rob, 2019. "Experimenting for sustainability transitions: A systematic literature review," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 153-164.
    19. 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.
    20. Neva Bojovic & Valérie Sabatier & Emmanuel Coblence, 2019. "Becoming Through Doing: How Experimental Spaces Enable Organizational Identity Work," Post-Print halshs-02376220, HAL.
    21. Ho, Chinh Q. & Hensher, David A. & Mulley, Corinne & Wong, Yale Z., 2018. "Potential uptake and willingness-to-pay for Mobility as a Service (MaaS): A stated choice study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 117(C), pages 302-318.
    22. 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.
    23. Marco Marconi & Michele Germani & Marco Mandolini & Claudio Favi, 2019. "Applying data mining technique to disassembly sequence planning: a method to assess effective disassembly time of industrial products," International Journal of Production Research, Taylor & Francis Journals, vol. 57(2), pages 599-623, January.
    24. Nancy M.P. Bocken & Karen Miller & Ilka Weissbrod & Maria Holgado & Steve Evans, 2017. "Business model experimentation for circularity: Driving sustainability in a large international clothing retailer," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2017(1-2), pages 85-122.
    25. Neva Bojovic & Corine Genet & Valerie Sabatier, 2018. "Learning, signaling, and convincing: The role of experimentation in the business modeling process," Grenoble Ecole de Management (Post-Print) hal-01591698, HAL.
    26. Frank W. Geels, 2005. "Technological Transitions and System Innovations," Books, Edward Elgar Publishing, number 3576.
    27. 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.
    28. Lütjen, Heiner & Tietze, Frank & Schultz, Carsten, 2017. "Service transitions of product-centric firms: An explorative study of service transition stages and barriers in Germany's energy market," International Journal of Production Economics, Elsevier, vol. 192(C), pages 106-119.
    29. Heike Proff & Thomas Martin Fojcik, 2015. "Business model innovations in times of long-term discontinuous technological change - an empirical examination of the automotive industry in transition to electric mobility," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 15(4), pages 418-442.
    30. Semee Yoon & Johannes Urpelainen & Milind Kandlikar, 2016. "Willingness to Pay for Solar Lanterns: Does the Trial Period Play a Role?," Review of Policy Research, Policy Studies Organization, vol. 33(3), pages 291-315, May.
    31. Danso, G. K. & Otoo, Miriam & Ekere, W. & Ddungu, S. & Madurangi, Ganesha, "undated". "Market feasibility of faecal sludge and municipal solid waste-based compost as measured by farmers’ willingness-to-pay for product attributes: evidence from Kampala, Uganda," Papers published in Journals (Open Access) H048217, International Water Management Institute.
    32. Mónica Ramos-Mejía & Alejandro Balanzo, 2018. "What It Takes to Lead Sustainability Transitions from the Bottom-Up: Strategic Interactions of Grassroots Ecopreneurs," Sustainability, MDPI, vol. 10(7), pages 1-20, 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. 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. Jean Mansuy & Giulia Caterina Verga & Bonno Pel & Ahmed Z. Khan & Wouter Achten & Ela Callorda Fossati & Tom Bauler & Philippe Lebeau & Cathy Macharis, 2022. "Transitioning to a circular economy: Changing Business Models and Business Ecosystems," ULB Institutional Repository 2013/352023, ULB -- Universite Libre de Bruxelles.
    3. Ebru Susur & Mats Engwall, 2023. "A transitions framework for circular business models," Journal of Industrial Ecology, Yale University, vol. 27(1), pages 19-32, February.
    4. Michael Saidani & Harrison Kim, 2022. "Nexus Between Life Cycle Assessment, Circularity, and Sustainability Indicators—Part I: a Review," Circular Economy and Sustainability, Springer, vol. 2(3), pages 1143-1156, September.
    5. Marcelo Werneck Barbosa, 2022. "A Critical Appraisal of Review Studies in Circular Economy: a Tertiary Study," Circular Economy and Sustainability, Springer, vol. 2(2), pages 473-505, June.
    6. Giulia Goffetti & Daniel Böckin & Henrikke Baumann & Anne‐Marie Tillman & Thomas Zobel, 2022. "Towards sustainable business models with a novel life cycle assessment method," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2019-2035, July.
    7. 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.
    8. M. G. E. Velter & V. Bitzer & N. M. P. Bocken, 2022. "A Boundary Tool for Multi-stakeholder Sustainable Business Model Innovation," Circular Economy and Sustainability, Springer, vol. 2(2), pages 401-431, June.
    9. Roberta Angelis, 2022. "Circular Economy Business Models: a Repertoire of Theoretical Relationships and a Research Agenda," Circular Economy and Sustainability, Springer, vol. 2(2), pages 433-446, June.
    10. Chedrak Chembessi & Christophe Beaurain & Geneviève Cloutier, 2022. "Analyzing Technical and Organizational Changes in Circular Economy (CE) Implementation with a TOE Framework: Insights from a CE Project of Kamouraska (Quebec)," Circular Economy and Sustainability, Springer, vol. 2(3), pages 915-936, September.
    11. Fenna Blomsma & Thomas Bauwens & Ilka Weissbrod & Julian Kirchherr, 2023. "The ‘need for speed’: Towards circular disruption—What it is, how to make it happen and how to know it's happening," Business Strategy and the Environment, Wiley Blackwell, vol. 32(3), pages 1010-1031, March.
    12. Pauline C. Reinecke & Jill A. Küberling-Jost & Thomas Wrona & Alice K. Zapf, 2023. "Towards a dynamic value network perspective of sustainable business models: the example of RECUP," Journal of Business Economics, Springer, vol. 93(4), pages 635-665, May.
    13. Bocken, Nancy & Konietzko, Jan, 2022. "Circular business model innovation in consumer-facing corporations," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    14. Viktoriya Prokhorova & Oleksandra Mrykhina & Orest Koleshchuk & Krystyna Slastianykova & Myroslav Harmatiy, 2023. "The holistic evaluation system of R&D results under the circular economy conditions," Eastern-European Journal of Enterprise Technologies, PC TECHNOLOGY CENTER, vol. 6(13 (126)), pages 15-23, 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. 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.
    2. 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.
    3. Wiebke Reim & David Sjödin & Vinit Parida, 2021. "Circular business model implementation: A capability development case study from the manufacturing industry," Business Strategy and the Environment, Wiley Blackwell, vol. 30(6), pages 2745-2757, September.
    4. 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.
    5. Helen Toxopeus & Elisa Achterberg & Friedemann Polzin, 2021. "How can firms access bank finance for circular business model innovation?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(6), pages 2773-2795, September.
    6. Walrave, Bob & Talmar, Madis & Podoynitsyna, Ksenia S. & Romme, A. Georges L. & Verbong, Geert P.J., 2018. "A multi-level perspective on innovation ecosystems for path-breaking innovation," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 103-113.
    7. Ida K. Rovanto & Anu Bask, 2021. "Systemic circular business model application at the company, supply chain and society levels—A view into circular economy native and adopter companies," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1153-1173, February.
    8. Hervé Corvellec & Alison F. Stowell & Nils Johansson, 2022. "Critiques of the circular economy," Journal of Industrial Ecology, Yale University, vol. 26(2), pages 421-432, April.
    9. Xiang Cai & Meiying Xie & Haijing Zhang & Zhenli Xu & Faxin Cheng, 2019. "Business Models of Distributed Solar Photovoltaic Power of China: The Business Model Canvas Perspective," Sustainability, MDPI, vol. 11(16), pages 1-27, August.
    10. Diaz Lopez, Fernando J. & Bastein, Ton & Tukker, Arnold, 2019. "Business Model Innovation for Resource-efficiency, Circularity and Cleaner Production: What 143 Cases Tell Us," Ecological Economics, Elsevier, vol. 155(C), pages 20-35.
    11. Miha Dominko & Kaja Primc & Renata Slabe-Erker & Barbara Kalar, 2023. "A bibliometric analysis of circular economy in the fields of business and economics: towards more action-oriented research," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 5797-5830, July.
    12. Rita Henriques & Filipa Figueiredo & João Nunes, 2023. "Product-Services for a Resource-Efficient and Circular Economy: An Updated Review," Sustainability, MDPI, vol. 15(15), pages 1-24, August.
    13. Giulia Goffetti & Daniel Böckin & Henrikke Baumann & Anne‐Marie Tillman & Thomas Zobel, 2022. "Towards sustainable business models with a novel life cycle assessment method," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2019-2035, July.
    14. 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.
    15. Noemi Sinkovics & Denanjalee Gunaratne & Rudolf R. Sinkovics & Francisco-Jose Molina-Castillo, 2021. "Sustainable Business Model Innovation: An Umbrella Review," Sustainability, MDPI, vol. 13(13), pages 1-17, June.
    16. Steven Day & Janet Godsell & Donato Masi & Wanrong Zhang, 2020. "Predicting consumer adoption of branded subscription services: A prospect theory perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1310-1330, March.
    17. Katja Beyer & Marlen Gabriele Arnold, 2022. "Social sustainability in an evolving circular fashion industry: identifying and triangulating concepts across different publication groups [Soziale Nachhaltigkeit in einer sich entwickelnden zirkul," Sustainability Nexus Forum, Springer, vol. 30(1), pages 29-54, December.
    18. 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.
    19. Hellström, Daniel & Olsson, John, 2024. "Let's go thrift shopping: Exploring circular business model innovation in fashion retail," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    20. 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.

    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:spr:circec:v:1:y:2021:i:1:d:10.1007_s43615-021-00026-z. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.