Circular economy business models as pillars of sustainability: Where are we now, and where are we heading?

Abstract

The prior literature has discussed the benefits of the circular economy business model (CEBM) while working to streamline the environmental aspect, touching upon the social aspect and improving the economic aspect. These aspects have been widely recognised as pillars of sustainability. Thus, prior scholars have sought to identify the relationship between the CEBM and sustainability. However, the extant literature, which remains relatively nascent, has failed to clarify this linkage for each pillar of sustainability. To address this lacuna, we followed a systematic literature review (SLR) approach to determine the current state of research on the CEBM and sustainability. Our study identifies and presents the thematic foci in the prior literature, which highlight the linkages between the CEBM and the pillars of sustainability. These thematic foci include the CEBM and sustainability, the CEBM and the environmental dimension, the CEBM and the social dimension and the CEBM and the economic dimension. In addition, this SLR recognises various research gaps within each theme and offers actionable avenues for future research. We also propose a conceptual framework, rooted in social capital theory (SCT), that highlights the linkages between the CEBM and sustainability. Our findings reveal that research at the intersection of the CEBM and sustainability considers the CEBM an integral component of sustainability. We conclude by presenting our work's theoretical and practical implications, which can assist scholars and organisations to incorporate the pillars of sustainability within their CEBMs.

Analysis of the Relationship between the Implementation of Circular Economy Principles and Financial Inclusion to Poverty Alleviation in Indonesia

“…The synergy between circular economy principles and financial inclusion is increasingly recognised, especially for MSMEs [32], [33]. By adopting circular business models, MSMEs can increase productivity, reduce costs, and attract investment, thereby improving financial viability and resilience [34], [35]. Initiatives that promote circular practices among MSMEs in Indonesia have the potential to improve financial inclusion through increased access to formal financial services, market connections, and business support [36].…”

Business strategies for achieving carbon neutrality goals in collaborative ecosystems: Bridging gaps in achieving operational status

“…Many countries are still grappling with the challenges of aligning their actions with their commitments (Zhao et al, 2022). In response, governments have implemented various initiatives to promote green practices among firms, including the development of environmentally friendly products (Peters & Buijs, 2022), the adoption of circular economy principles (Hina et al, 2023;, and the transition to renewable energy sources (Potrč et al, 2021;Vieira et al, 2023). However, in spite of the fact that CN targets have been established, many businesses do not have a detailed plan for accomplishing these goals (United Nations Environment Programme…”

Artificial intelligence (AI)‐driven strategic business model innovations in small‐ and medium‐sized enterprises. Insights on technological and strategic enablers for carbon neutral businesses

“…Complex data sets can include patterns and trends that machine learning algorithms can find, helping businesses make better decisions and create focused carbon reduction plans (Meng et al, 2022; Zohal & Soleimani, 2016). AI may also improve the procedures of monitoring, reporting, and verifying, enabling more accountability and transparency in the measurement of emissions (Dhir et al, 2021; Hina et al, 2023; S. J. Khan, Badghish, et al, 2023). Innovating business models is another essential component in reaching carbon neutrality (Kanaani et al, 2023; Mor et al, 2021).…”