Circular Systems Sandbox: A process tool for circular systems design and rebound effect reduction

This paper develops and validates a novel design artifact called Circular Systems Sandbox. While there is an abundance of literature on new product development and business model innovation, a notable gap exists in integrating these two domains. More systemic design is deemed indispensable because the mismatched design of products, services, business models and collaborations lead to harmful rebound effects. We employ a mixed methods design science approach involving 31 expert interviews, 11 workshops, and an experimental evaluation with 108 participants. The findings demonstrate that the Circular Systems Sandbox significantly enhances the quality of circular product and business model design, providing a practical and comprehensive framework for entrepreneurs. The study contributes to theory by elucidating the interconnections within Circular Systems Design, offering preventive strategies for rebound effects, and aligning with calls for systemic solutions for the Circular Economy. This paper not only advances Circular Systems Design as a concept but also empirically proves its utility, encouraging future research and application in diverse sectors.