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Circular Business Model Innovation: Key Patterns and Challenges to unleash recycling value creation potential

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  • Rémi Beulque

    (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Franck Aggeri

    (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

Abstract

Design and implementation of new disruptive circular business models are key issues for a growing number of companies. We propose in this article a detailed empirical study. It is based on a dozen of cases studies of established firms, which currently experience such innovation processes. Most of them are European or global leaders, who sought to achieve higher value creation out of one of two common place circular strategies, namely closed and open loops recycling strategies. According to recent literature, different factors play a key role in such strategies such as products characteristics, technologies maturity or market demand. In the paper, we highlight the main patterns they followed when designing and implementing their business models, depending on their strategic goals, the incentives that led them through this innovation process, and some recurring challenges to recycling. We also provide insights about some of the key challenges to these business models innovation processes with a strategic management perspective.

Suggested Citation

  • Rémi Beulque & Franck Aggeri, 2016. "Circular Business Model Innovation: Key Patterns and Challenges to unleash recycling value creation potential," Post-Print halshs-01290810, HAL.
    • Handle: RePEc:hal:journl:halshs-01290810
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01290810
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    References listed on IDEAS

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    1. Rémi Beulque & Franck Aggeri, 2015. "Circular economy at the glance of business models - learnings from automotive end-of-life - XXIVth International Conference on Strategic Management [L’économie circulaire au prisme des business mod," Post-Print hal-01168201, HAL.
    2. Richard A. Bettis & C. K. Prahalad, 1995. "The dominant logic: Retrospective and extension," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 5-14.
    3. B. Demil & X. Lecocq, 2010. "Business model evolution : in search of dynamic consistency," Post-Print hal-00572915, HAL.
    4. Karolin Frankenberger & Tobias Weiblen & Michaela Csik & Oliver Gassmann, 2013. "The 4I-framework of business model innovation: a structured view on process phases and challenges," International Journal of Product Development, Inderscience Enterprises Ltd, vol. 18(3/4), pages 249-273.
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