Business model innovation for circular economy and sustainability: A review of approaches

Building organizational capabilities for circular economy requires as much technological or product innovation as systemic value innovation with the configuration of new business models fit with circular economy principles.

“Hence, building organizational (or even interorganizational) capabilities for CE requires as much technological or product innovation as systemic value innovation with the configuration of new business models (BM) which are fit with CE principles [8,9].”

A main challenge is transferring conceptual knowledge/learnings about PSS and circular economy to real-world practice in an effective, useful, and simple approach.

“transferring conceptual knowledge/learnings about PSS and circular economy to the real-world practice in an effective, useful, and simple approach [9,23]”

The decision-makers' ambitions in embedding CE principles into their BMs are key factors influencing or limiting the achievement of impactful environmental and economic outcomes.

“Despite the fact that the CE-Driven BM Configurator offers a broad range of solution patterns (i.e., from more simplistic to more complex configurations) to prompt ideation, the decision-makers' ambitions in embedding CE principles to their BMs are key factors influencing or limiting the achievement of impactful environmental and economic outcomes [9,66].”

Minor changes on the product are inevitable when configuring PSS BMs for CE.

“However, minor changes on the product are inevitable, as identified in previous research from the PSS [62] or CE [9,63] fields.”

The transition to CE through new business models is a learning process that will require more than a tool, but a holistic and systemic approach of continuous change.

“This reinforces that the transition to CE through new business models is a learning process [67], which will require more than a tool, but a holistic and systemic approach of continuous change [9].”