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How does business model redesign foster resilience in emerging circular value chains?

Author

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  • Laura Carraresi

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Stefanie Bröring

Abstract

This paper aims to elucidate how companies can innovate their business model to strengthen their resilience and timely respond to current ecosystem challenges, like the emergence of new cross-industry value chains in the circular economy. The adoption of new sustainable technologies leads to the disruption of current linear settings and to the need of business model innovation. This study draws upon a case study from the circular economy rooted in by-product valorisation and presents an innovative bio-based process enabling phosphate recovery from rapeseed oil press-cakes. Incumbent actors of established (linear) value chains have been interviewed to highlight potential business model innovation. To this end, an inductive theory-building case study approach has been applied. Results reveal that a business model redesign is needed in order to build novel circular value chains, but it depends on chain actors' capacity to adapt to change, namely to be resilient. The new value proposition needs to reach new customer targets more sensitive to sustainability issues and/or to enhance the awareness towards bio-based technological solutions into extant customers. Value creation and capture highly depend on the coordinating role of the chain actor willing to invest in the new bio-based technology, which becomes the focal company within the emergent value chain. Two scenarios are open, according to who is playing this role: if the new recovery and release process is carried out by an incumbent, the new process requires exploratory, transformative and exploitative learning together with extra investments in highly specific assets and the establishment of new cross-industry relationships to complement missing assets and knowledge about such technological breakthroughs available on the market. If a new actor enters the emerging value chain, business model innovation is mediated and moderated by a company owning both tangible and intangible resources, thus catalysing technology implementation.

Suggested Citation

  • Laura Carraresi & Stefanie Bröring, 2021. "How does business model redesign foster resilience in emerging circular value chains?," Post-Print hal-03267359, HAL.
    • Handle: RePEc:hal:journl:hal-03267359
    DOI: 10.1016/j.jclepro.2021.125823
    Note: View the original document on HAL open archive server: https://hal.science/hal-03267359
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    Cited by:

    1. Ingvild Reine Assmann & Francesco Rosati & Sandra Naomi Morioka, 2023. "Determinants of circular business model adoption—A systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6008-6028, December.
    2. Morteza Ghobakhloo & Mohammad Iranmanesh & Manuel E. Morales & Mehrbakhsh Nilashi & Azlan Amran, 2023. "Actions and approaches for enabling Industry 5.0‐driven sustainable industrial transformation: A strategy roadmap," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1473-1494, May.
    3. Lei Zhu & Jing Hu & Jiahui Xu & Yannan Li & Mangmang Liang, 2022. "Spatial Distribution Characteristics and Influencing Factors of Pro-Poor Tourism Villages in China," Sustainability, MDPI, vol. 14(23), pages 1-20, November.
    4. Kristina Stoiber & Kurt Matzler & Julia Hautz, 2023. "Ambidextrous structures paving the way for disruptive business models: a conceptual framework," Review of Managerial Science, Springer, vol. 17(4), pages 1439-1485, May.
    5. Henk Ruiter & Frank De Feijter & Koos Wagensveld, 2021. "Management Control and Business Model Innovation in the Context of a Circular Economy in the Dutch Construction Industry," Sustainability, MDPI, vol. 14(1), pages 1-18, December.

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    Keywords

    Business model innovation; Cross-industry relationships; Sustainability transition; Value creation; By-product valorisation; Resilience;
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