The place of waste: Changing business value for the circular economy

Abstract

Traditionally, wasted resources are considered a burden that imposes a cost on organizations. However, ecological sustainability principles underpinning the linked discourses of industrial ecology and the Circular Economy conceptualize waste as intrinsically valuable. Our research identified exemplar business organizations that had each changed their business models to resolve the tension of waste as a burden and/or resource. Synthesizing these cases, we found these organizations applied systems thinking to reframe their product and service offerings and developed material circular flows in their business models. Analysis of how our exemplar organizations changed their business models to tackle pressing sustainability issues and to resolve the burden–resource tension show that the focus of change is on reconceptualizing their understanding of the role of waste in the value chain of their products and services. This altered understanding of waste as a resource across their value networks initiated negotiations with their existing suppliers to also modify their supply chain practices.

Luxury products for the circular economy? A case study of Bang & Olufsen

“…The rootedness in industrial ecology also implies that there is a focus on material flows and product characteristics when identifying circular activities and product attributes. The transition from a linear to a circular economy typically demands changed business models (Hazen, Mollenkopf, & Wang, ; Perey, Benn, Agarwal, & Edwards, ). Such circular business models are often more complex, involve more stakeholders, and are affiliated with uncertainties, which hinder the adoption of such business models, including sceptical consumers (Brown & Bajada, ; Linder & Williander, ; Roome & Louche, ).…”

Business model based on strong sustainability: Insights from an empirical study

“…Permaculture corresponds to this implication because it involves designing a systemic environment that takes into consideration the interdependencies and cycles existing in nature, including the water cycle, relationships and interactions between nature and humans, and the ultimate design of self‐sustaining and sustainable ecosystems (Holmgren, ). Another example of interdependent systemic thinking in business is the development of circular flows conceptualizing waste as a resource (Perey et al, ; Zucchella & Previtali, ).…”

“…The literature incorporating strong sustainability in business is scarce (de Oliveira Neto et al, 2018); only more recently did frameworks attempting to merge strong sustainability with business practices start to appear (e.g., de Oliveira Neto et al, 2018;Landrum & Ohsowski, 2018;Perey, Benn, Agarwal, & Edwards, 2018). From this outset, the literature on business models advocating the SSBM is limited.…”

Environmental sustainability and financial performance of the small‐scale tea processors in Kenya

“…Similarly, environmental management offers added capacity to reduce wastes, effluents, and emissions in the production process (Hartmann & Vachon, 2018). Furthermore, waste minimization help reduce lead times and increase product quality (Perey, Benn, & Edwards, 2018).…”