Purpose The purpose of this paper is twofold: first, to advance the knowledge of Circular Business Models (BMs) over linear models by focusing on new dynamics which are unique to developing countries and have mostly been overlooked by contemporary literature; and second, to bring to the fore aspects of human-sphere which are currently under-researched in the circular economy (CE) domain. Therefore, the research explores how collaboration can facilitate the transition of a developing country’s economy through the creation of value from circular BMs and human-sphere. Design/methodology/approach To fulfill the research objectives, the authors apply natural resource-based view (NRBV) theory to an in-depth case study. The authors draw the data from semi-structured interviews and observations in North African manufacturing companies. Findings It was found that multi-stakeholder collaboration is pertinent in implementing CE, especially in developing countries. Collaboration between companies, focusing on CE BMs, with other companies/SMEs could lead to technology transfer and organizational learning necessary for resource efficiency (RE) and clean technology (CT) – the basis for CE. The authors propose a model for collaboration as an enabler for CE. Research limitations/implications The analysis found multi-stakeholder collaboration to be an important antecedent to CE implementation in a developing country context. Furthermore, the authors found multinational companies who implement CE BMs generate a beneficial symbiotic relationship with local businesses. These benefits mainly revolve around technology transfer and organizational learning which is necessary for RE and CT – the basis for CE. Therefore, to advance knowledge and practice in this area, the authors propose a model for collaboration as an enabler for CE. Practical implications The authors argue for the importance of collaboration in advancing CE practices which can yield tangible benefits for developing economies. Originality/value This paper helps address the lack of theory driven research in CE. The paper is a pioneer in this research field as it proposes a theoretical framework for collaboration in CE drawing on from NRBV.

The role of closed loop supply chains (CLSC) for creating and recovering value is widely acknowledged in supply chain management and there are many examples, mainly in the business-to-business sector, of successful OEM remanufacturing. The integration of value creation and recovery activities into retail customer value propositions is, however, under researched and raises many challenges, especially in Fast Moving Consumer Goods (FMCG) retail where few real world examples have been published. The recent emergence of the term 'circular economy' has initiated further debate about closed loop value propositions and closed loop supply chain implications. This paper selects four circular economy-led closed loop product case examples from a major European FMCG company, and assesses, at a high level, how these cases created value, for whom value was created, and key challenges in their implementation. The findings highlight that each case is different. Closing loops and creating successful value propositions is complex and requires simultaneous reconfiguration of key building blocks to ensure customer acceptance and business viability. The paper proposes the term 'circular supply chain' for cases where circular economy principles are explicitly incorporated in CLSC for value creation.

PurposeThis paper highlights how biological waste materials can be used for generating the much needed energy and obtaining nutrient-rich compost for agriculture through anaerobic digestion (AD). The paper further highlights the importance of small and medium enterprises (SMEs) in using AD for converting waste to energy (WTE), leading to many environmental benefits as well as clean energy generation. It would help to reduce pollution, water acidification and carbon emissions that eventually lead to climate change.Design/methodology/approachThe researchers undertook an in-depth study to highlight the role played by an SME in converting WTE and helping towards achieving circularity. An exploratory case-based approach was used to understand value leakage for an AD plant operating on WTE principles in the UK. The plant is still currently active, and it is located in the Midlands, England. Fifteen semi-structured interviews were undertaken with different stakeholders.FindingsThis paper reveals the importance of WTE and the significant role played by AD in converting food waste into useful matter. It reports further into the value leakage issue faced in the AD plants. It demonstrates the importance of technological innovation in SME to capture value leakages in a circular model. Most importantly, it demonstrates how SMEs gain competitive advantage and generate value proposition, while they aim for zero waste to landfill objective.Research limitations/implicationsThe research involves a case study based on an SME, operating on a circular business model. It will be worth investigating how other businesses could gain competitive advantage. For SMEs interested in AD for WTE, this paper introduces further technological innovation to the AD process to leverage further potential for reuse of waste liquid. Any SMEs entering WTE market ought to take into consideration such design implications.Practical implicationsThe paper reveals how the use of waste by SMEs would lead to many environmental benefits as well as clean energy generation. It would help to reduce pollution, water acidification and carbon emissions that eventually lead to climate change. It is useful for addressing the needs of waste food producers and is a cheap raw material for generating energy. The benefits to the public are that it reduces the need for landfill and increases recycling.Social implicationsThe WTE is an effective way of making use of last-stage waste.Originality/valueDespite SMEs being the powerhouse of the European economies, there is limited research investigating how circular economy (CE) could unlock their potential. Moreover, development of AD in the UK has lagged behind other EU countries. We highlight value leakages and argue how technological innovation should be used to close the value chain loop in the WTE production process. This paper, therefore, demonstrates the important role of an AD process, which involves decomposition of biodegradable materials. It shows that AD is an economically viable and environmentally friendly process of obtaining clean energy at low cost.

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This is a repository copy of An Internet of Things-enabled decision support system for circular economy business model.