Circular business models in high value manufacturing: Five industry cases to bridge theory and practice

Okorie, Okechukwu; Charnley, Fiona; Russell, Jennifer D.; Tiwari, Ashutosh; Moreno, Mariale

doi:10.1002/bse.2715

Cited by 35 publications

(51 citation statements)

References 91 publications

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“…It is important to note that among the design strategies that emerged in our study, PSS has been the most connected with circular business models, approaching servitization (Halstenberg et al, 2019; Okorie et al, 2021). Moreover, the expansion of digital transformation has enabled PSS offerings (Bressanelli et al, 2018).…”

Section: Discussionmentioning

confidence: 89%

“…In this regard, several circular strategies, also known as design‐for‐X (DfX) approaches, have become the standard: such as product life extension, modularization, upgrading, and durability (Moreno et al, 2016). Moreover, products approaching the servitization and product‐service‐system (PSS) business have also been proposed as circular business models (Halstenberg et al, 2019; Okorie et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

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Circular economy‐based new products and company performance: The role of stakeholders and Industry 4.0 technologies

et al. 2021

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While the circular economy (CE) attracts attention from scholars and practitioners, the concept has been challenged by claims that the CE may be seen as a vague concept, or a new label for old green management practices. We propose a new approach to study the effects of the CE on company performance: circular product design (CPD). Consequently, this work investigates how Industry 4.0 technologies and stakeholder pressure influence CPD and, in turn, impact on company performance. Data were obtained from firms which develop products in the electric-electronic and equipment (EEE) sectors in Brazil. Our research results indicate that (i) the application of Industry 4.0 technologies favors CPD, in particular artificial intelligence and big data analytics; (ii) pressure from stakeholders can encourage the adoption of circular strategies, specially from suppliers because they are responsible for developing and delivering smart components; and (iii) although the literature may be seen as controversial, there is a positive relationship with regard to the impacts of CE adoption on market performance. Among its main implications, the article also suggests a set of design strategies oriented towards the development of products for the CE.

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Section: Discussionmentioning

confidence: 89%

Section: Introductionmentioning

confidence: 99%

Circular economy‐based new products and company performance: The role of stakeholders and Industry 4.0 technologies

et al. 2021

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“…Previous research on business model innovation has tended to underestimate the early assessment of an SO's value‐capture potential and has placed instead a greater focus on value creation potential (Foss & Saebi, 2018; Ritter & Lettl, 2018). More recently, a shift to advancing previously held assumptions on value‐capture has begun to be recognized (e.g., Okorie et al, 2021). We contribute to this shift by demonstrating that, early on, SO developers adopt a threefold framing of value‐capture, which means reviewing whether the SO can offer a surplus balance of revenues over costs for the focal company and for ecosystem partners and customers.…”

Section: Discussionmentioning

confidence: 99%

“…More recently, a shift to advancing previously held assumptions on value-capture has begun to be recognized (e.g., Okorie et al, 2021).…”

Section: Theoretical Contributionsmentioning

confidence: 99%

“…Large incumbent companies are more prone to be thwarted by these obstacles than start‐ups (Guldmann & Huulgaard, 2020). However, the underlying challenge is that, due to their systemic nature, CBMs involve greater uncertainty when it comes to validating early business model assumptions (Ethirajan et al, 2021; Hofmann & Jaeger‐Erben, 2020; Linder & Williander, 2017; Okorie et al, 2021) compared with linear counterparts. In other words, it is more challenging to decide early on whether an SO is a worthwhile pursuit, since companies would need to think beyond internal analysis to incorporate both the organizational and ecosystem levels (Frishammar & Parida, 2021).…”

Section: Introductionmentioning

confidence: 99%

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Assessing sustainability opportunities for circular business models

2021

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As the unfolding climate crisis escalates, incumbent manufacturing companies are increasingly sensing and seizing sustainability opportunities—ideas that help to generate value in a more sustainable way than existing alternatives. Prior literature has underscored the importance of opportunity recognition and has theorized various types of circular business models to address sustainability in practice. However, there is a knowledge gap regarding the step in between: undertaking an assessment that provides a foundation for subsequently pursuing a circular business model. Based on a multiple case study of four innovation projects pursuing sustainability, this article identifies capability assessment, ecosystem alignment, and value‐capture viability as key dimensions in evaluating sustainability opportunities prior to circular business model design and development. These insights are aggregated into a framework that allows companies to conduct a systematic assessment of sustainability opportunities in practice. The framework provides new theoretical implications for the literature on circular economy and business model innovation, and it offers hands‐on advice for management practice.

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A framework for digital supply chains in the era of circular economy: Implications on environmental sustainability

Dwivedi

Paul

2022

Bus Strat Env

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Increased attention to environmental sustainability has created pressures to adopt the circular economy (CE) principles. The transition toward CE requires system redesign and business process modification. Embracing disruptive technologies produces several benefits including improved productivity and resource utilization. Thus, organizations become eager to adopt and sustain digital supply chains (DSCs) in globally competitive markets. Additionally, the linkage between DSC with CE and the impact of DSC on organizational performances from the perspective of CE remain unexplored in previous studies. This study aims to develop a framework for DSC adoption from the perspective of CE. The present study recognizes the barriers through literature review and experts' opinions that must be eradicated to attain the objectives of DSCs. In this study, 19 potential barriers to DSCs were identified. A fuzzy best–worst method (BWM) was adopted to prioritize the identified barriers. Further, the study formulates strategies for integrating the CE with DSCs to overcome the barriers. A modified Total Interpretive Structure Model (m‐TISM) was developed to highlight the different levels of suggested strategies. This study contributes to the existing literature by analyzing the identified barriers to DSCs and suggesting overcoming strategies. The integrated methodology assists organizations to develop efficient and integrated strategic measures toward DSC adoption through the application of enhanced knowledge of CE and environmental sustainability. The findings reveal that the “lack of digital skills and facilities” is the most influential barrier in DSC development. Further, the findings indicate that financial and regulatory supports are the primary steps toward a digitalized economy.

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Circular business models in high value manufacturing: Five industry cases to bridge theory and practice

Cited by 35 publications

References 91 publications

Circular economy‐based new products and company performance: The role of stakeholders and Industry 4.0 technologies

Circular economy‐based new products and company performance: The role of stakeholders and Industry 4.0 technologies

Assessing sustainability opportunities for circular business models

A framework for digital supply chains in the era of circular economy: Implications on environmental sustainability

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