Business models and closed‐loop supply chains: a typology

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -To delineate typologies that capture the relationship between closed-loop supply chains and value-added business models, and thereby to suggest a research agenda for the transition to sustainable business. Design/methodology/approach -Develops four new theoretical categories or typologies of closed-loop systems and applies them to the context of the automotive industry. Conceptual, rather than empirical. Findings -That hybrid closed-loop systems can be combined with innovative non-linear value configurations to enable the transition to more sustainable production and consumption. Research limitations/implications -Identifies research agenda to explore how novel business models can integrate with various closed-loop systems. Theoretical, but grounded in research into the automotive industry. Practical implications -That closed-loop systems are best implemented outside traditional linear value added structures. Originality/value -Places closed-loop systems at the heart of the (redesigned) business model rather than as an accessory that must be adapted to the demands of existing approaches. Suggests scholars should be part of this innovative process, not merely observers.

Circular Business Models: Defining a Concept and Framing an Emerging Research Field

“…In addition, innovating these elements helps companies develop the networks required to coordinate closing material flows at value chain level. This is relevant, as many material flows can only be effectively closed within a larger value chain network (especially the post-business, post-consumer, or post-society loops as presented in Section 3.1) [36], e.g., by establishing alliances with other stakeholders, creating value for various value chain partners, or altering the way economic transactions between partners take shape [45].…”

“…However, realising circular strategies often extends beyond company boundaries. Wells and Seitz [36], who identify four archetypical closed-loop value chains, show that only the 'internal loop' (material reuse within the point of manufacture) is realisable at company level. The 'post-business loop' (material exchange between distinct companies) requires coordination and alignment of business models between at least two companies.…”

“…However, realising circular strategies often extends beyond company boundaries. Wells and Seitz [36], who identify four archetypical closed-loop value chains, show that As Figure 1 shows, strategies for cycling products, parts, or materials (from here onwards referred to as circular strategies) have been developed to improve resource efficiency in the use and end-of-life phases. This set of circular strategies includes enabling a second life for products and parts through repair or remanufacturing and enabling material recycling when the end-of-life is irreversibly reached (Figure 1).…”

“…The 'post-business loop' (material exchange between distinct companies) requires coordination and alignment of business models between at least two companies. The 'post-consumer loop' (return from consumers back to the manufacturer via a company-based collection scheme) and 'post-society loop' (return from consumers via an independent network to a different point of manufacture) are often managed by entirely separate businesses and logistic systems [36].…”

A Manufacturing/Remanufacturing System with the Consideration of Required Quality of End-of-used Products

“…And remanufacturing system has unique advantage, unlike recycling and re-use, the process of remanufacturing does not degrade or even exceed the † : Corresponding Author overall value of the materials used (Thierry et al, 1995;Beamon, 1999). Realizing the potential for profitable remanufacturing, many businesses have emerged to exploit specific remanufacturing opportunities (Wells and Seitz, 2004).…”