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A Review and Typology of Circular Economy Business Model Patterns

Lüdeke-Freund, Florian; Gold, Stefan and Bocken, Nancy M.P. LU (2018) In Journal of Industrial Ecology
Abstract

The circular economy (CE) requires companies to rethink their supply chains and business models. Several frameworks found in the academic and practitioner literature propose circular economy business models (CEBMs) to redefine how companies create value while adhering to CE principles. A review of these frameworks shows that some models are frequently discussed, some are framework specific, and some use a different wording to refer to similar CEBMs, pointing to the need to consolidate the current state of the art. We conduct a morphological analysis of 26 current CEBMs from the literature, which includes defining their major business model dimensions and identifying the specific characteristics of these dimensions. Based on this... (More)

The circular economy (CE) requires companies to rethink their supply chains and business models. Several frameworks found in the academic and practitioner literature propose circular economy business models (CEBMs) to redefine how companies create value while adhering to CE principles. A review of these frameworks shows that some models are frequently discussed, some are framework specific, and some use a different wording to refer to similar CEBMs, pointing to the need to consolidate the current state of the art. We conduct a morphological analysis of 26 current CEBMs from the literature, which includes defining their major business model dimensions and identifying the specific characteristics of these dimensions. Based on this analysis, we identify a broad range of business model design options and propose six major CEBM patterns with the potential to support the closing of resource flows: repair and maintenance; reuse and redistribution; refurbishment and remanufacturing; recycling; cascading and repurposing; and organic feedstock business model patterns. We also discuss different design strategies to support the development of these CEBMs.

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Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
Business model, Circular economy, Review, Supply chain, Typology, Value creation
in
Journal of Industrial Ecology
publisher
MIT Press
external identifiers
  • scopus:85045956639
ISSN
1088-1980
DOI
10.1111/jiec.12763
language
English
LU publication?
yes
id
1601abad-22e3-4f26-b6da-75784aa20de2
date added to LUP
2018-05-04 13:08:49
date last changed
2018-10-03 11:07:05
@article{1601abad-22e3-4f26-b6da-75784aa20de2,
  abstract     = {<p>The circular economy (CE) requires companies to rethink their supply chains and business models. Several frameworks found in the academic and practitioner literature propose circular economy business models (CEBMs) to redefine how companies create value while adhering to CE principles. A review of these frameworks shows that some models are frequently discussed, some are framework specific, and some use a different wording to refer to similar CEBMs, pointing to the need to consolidate the current state of the art. We conduct a morphological analysis of 26 current CEBMs from the literature, which includes defining their major business model dimensions and identifying the specific characteristics of these dimensions. Based on this analysis, we identify a broad range of business model design options and propose six major CEBM patterns with the potential to support the closing of resource flows: repair and maintenance; reuse and redistribution; refurbishment and remanufacturing; recycling; cascading and repurposing; and organic feedstock business model patterns. We also discuss different design strategies to support the development of these CEBMs.</p>},
  author       = {Lüdeke-Freund, Florian and Gold, Stefan and Bocken, Nancy M.P.},
  issn         = {1088-1980},
  keyword      = {Business model,Circular economy,Review,Supply chain,Typology,Value creation},
  language     = {eng},
  month        = {04},
  publisher    = {MIT Press},
  series       = {Journal of Industrial Ecology},
  title        = {A Review and Typology of Circular Economy Business Model Patterns},
  url          = {http://dx.doi.org/10.1111/jiec.12763},
  year         = {2018},
}