Switching from the current linear model of economy to a circular one has recently attracted increased attention from major global companies e.g., Google, Unilever, Renault, and policymakers attending ...the World Economic Forum. The reasons for this are the huge financial, social and environmental benefits. However, the global shift from one model of economy to another also concerns smaller companies on a micro-level. Thus, comprehensive knowledge on designing circular business models is needed to stimulate and foster implementation of the circular economy. Existing business models for the circular economy have limited transferability and there is no comprehensive framework supporting every kind of company in designing a circular business model. This study employs a literature review to identify and classify the circular economy characteristics according to a business model structure. The investigation in the eight sub-domains of research on circular business models was used to redefine the components of the business model canvas in the context of the circular economy. Two new components—the take-back system and adoption factors—have been identified, thereby leading to the conceptualization of an extended framework for the circular business model canvas. Additionally, the triple fit challenge has been recognized as an enabler of the transition towards a circular business model. Some directions for further research have been outlined, as well.
Circular business models: A review Geissdoerfer, Martin; Pieroni, Marina P.P.; Pigosso, Daniela C.A. ...
Journal of cleaner production,
12/2020, Volume:
277
Journal Article
Peer reviewed
Open access
The Circular Economy is gaining traction in academia, industry, and policy making as an alternative model that minimises resource depletion, waste, and emissions. To implement the concept on the ...organisational level, business models are an important leverage. A body of literature has emerged investigating the notion of circular business model and circular business model innovation, however, there is considerable lack of clarity about their theoretical conceptualisation. To address this and systematise the state-of-the-art of the nascent field of circular business models and circular business model innovation, we have reviewed this literature, employing systematic database searches and cross-reference snowballing. Our contributions to conceptual clarity are: (1) an overview of the history of the concepts of circular business model and circular business model innovation, (2) an overview and synthesis of definitions of circular business model and circular business model innovation, and (3) an overview and synthesis of conceptual frameworks for circular business model and circular business model innovation.
•Circular business models are key levers for the implementation of a circular economy.•There is still considerable lack of clarity about their theoretical conceptualisation.•History of the circular business model and circular business model innovation concepts.•Definitions for CBM and CBMI.•Conceptual frameworks for CBM and CBMI.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
This paper provides the first formal model of business model innovation. Our analysis focuses on sponsor-based business model innovations where a firm monetizes its product through sponsors rather ...than setting prices to its customer base. We analyze strategic interactions between an innovative entrant and an incumbent where the incumbent may imitate the entrant's business model innovation once it is revealed. The results suggest that an entrant needs to strategically choose whether to reveal its innovation by competing through the new business model, or conceal it by adopting a traditional business model. We also show that the value of business model innovation may be so substantial that an incumbent may prefer to compete in a duopoly rather than to remain a monopolist.
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BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, PNG, SBCE, SBMB, UL, UM, UPUK
Purpose
The purpose of this paper is to derive a taxonomy of business models used by start-up firms that rely on data as a key resource for business, namely data-driven business models (DDBMs). By ...providing a framework to systematically analyse DDBMs, the study provides an introduction to DDBM as a field of study.
Design/methodology/approach
To develop the taxonomy of DDBMs, business model descriptions of 100 randomly chosen start-up firms were coded using a DDBM framework derived from literature, comprising six dimensions with 35 features. Subsequent application of clustering algorithms produced six different types of DDBM, validated by case studies from the study’s sample.
Findings
The taxonomy derived from the research consists of six different types of DDBM among start-ups. These types are characterised by a subset of six of nine clustering variables from the DDBM framework.
Practical implications
A major contribution of the paper is the designed framework, which stimulates thinking about the nature and future of DDBMs. The proposed taxonomy will help organisations to position their activities in the current DDBM landscape. Moreover, framework and taxonomy may lead to a DDBM design toolbox.
Originality/value
This paper develops a basis for understanding how start-ups build business models capture value from data as a key resource, adding a business perspective to the discussion of big data. By offering the scientific community a specific framework of business model features and a subsequent taxonomy, the paper provides reference points and serves as a foundation for future studies of DDBMs.
The growing literature on Sustainable Business Model Innovation has received much attention, not of academicians only but practitioners also. The concept and the theoretical rationalisation of its ...components still need more elaboration. So far, more should be known about its philosophy of existence, which obstructs its development towards its literature. This study attempts to bridge this gap by revealing the derived philosophy of Sustainable Business Model Innovation. It assesses the inclusion of Business Model components in Sustainable Business Model Innovation by identifying related 61 research papers and qualitatively anatomise them. The study attempts to connect the analogy of Sustainable Business Model Innovation with Business Model Innovation and Sustainable Business Model. The results identified analogies between Business Model, Business Model Innovation, Sustainable Business Model, and Sustainable Business Model Innovation, and configures Sustainable Business Model Innovation based on sustainable value innovation. The research gap and questions have been identified. Based on the analysis, the research has proposed Sustainable Business Model Innovation components comprised of Sustainable Value Proposition Innovation, Sustainable Value Creation and Delivery Innovation, and Sustainable Value Capture Innovation. This study contributes to the Sustainable Business Model Innovation theoretical literature and would help the practitioner and researcher to develop concise and comprehensive sub-components and metrics for Sustainable Business Model Innovation.
•Business Model Innovation is a future to deal with sustainability challenges.•Understanding of the underlying philosophy of SBMI is relatively still unexplored.•SBMI analogy has been identified in the present study.•Philosophy of SBMI through value, innovation, and sustainability are identified.•The study provides research gaps and proposes a question for further research.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
Digitalization plays a major role in contributing towards the United Nations Sustainable Development Goals. Without transformation of existing businesses, both economic and environmental challenges ...of the future cannot be solved sustainably. However, there is much confusion on interrelationships and terms dealing with digitization or digitalization: Digital business model, digital transformation, digital entrepreneurship. How do these terms interrelate with and to digitalization, and how do they support firms to grow sustainably? To answer this question, we identified seven core digital-related terms based on a structured literature search within the management and economics domain, namely: Digital, Business Model, Digital Business Model, Digital Technology, Digital Innovation, Digital Transformation, and Digital Entrepreneurship. Thereafter, we analyzed prior literature for deriving a common understanding and definition as a basis for interrelations within a conceptual framework. Definitions were presented in a case study setup with twelve innovation and research and development (R&D) managers from various business units of a German high-tech company. Based on these insights, we propose a conceptual framework on how Digital Readiness, Digital Technology, and Digital Business Models might sustainably relate to Innovation, moderated by a Digital Transformation Process. With this approach, we aim to equip practitioners and researchers alike in handling and addressing change through digitalization sustainably.
Successful business is increasingly about understanding the challenges and opportunities linked to society's transition towards sustainability and, e.g., being able to innovate, design and build ...business models that are functional in this context. However, current business model innovation and design generally fails to sufficiently embrace the sustainability dimension. Typically, the business case of sustainability is not understood profoundly enough; the planning horizon and system scope are insufficient; the competence to bring together people into systematic ventures towards sustainable business is too low. A unifying framework for sustainability analyses, planning, cross-disciplinary and cross-sector cooperation, and cohesive use of the myriad sustainability tools, methods and concepts has been developed: the Framework for Strategic Sustainable Development (FSSD). Similarly, a generic approach to business model design has been put forward: the Business Model Canvas (BMC). In this paper we explore how the FSSD could inform business model innovation and design by combining it with the BMC and supplementary tools, methods and concepts such as creativity techniques, value network mapping, life-cycle assessment, and product-service systems. The results show that the FSSD-BMC combination can support business model innovation and design for strategic sustainable development, as well as strengthen each supplementary tool, method and concept in its own primary purpose. We apply the combined approach, for the purpose of initial testing and presentation, to a real case of business model evolution. Based on our findings we propose a new approach to business model innovation and design for strategic sustainable development. The new approach facilitates, e.g., business scalability and risk avoidance and clarifies the interplay between classical business model development and strategic sustainability thinking. The new approach highlights the opportunity for novel business model design for future sustainable success.
•A strategic sustainability framework is combined with the business model canvas.•An approach to business model design for strategic sustainable development is proposed.•The approach links an organization's sustainable vision, strategy and business models.•The approach highlights the opportunity for novel business model design.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK, ZRSKP
The capability to rapidly and successfully move into new business models is an important source of sustainable competitive advantage and a key leverage to improve the sustainability performance of ...organisations. However, research suggests that many business model innovations fail. Despite the importance of the topic, the reasons for failure are relatively unexplored, and there is no comprehensive review of the sustainable business model innovation literature. This research provides a review of the literature, using a systematic database search and cross-reference snowballing. Its key contributions are: (1) a review of the key underlying concepts, discussing their similarities and differences and offer new definitions where there is an identified need; (2) we identify a research gap; and (3) we deduct research questions to address the gap.
•Business model innovation is key leverage for financial and sustainability performance.•Many business model innovation attempts fail, this remains relatively unexplored.•We provide a comprehensive literature review of sustainable business model innovation.•We compared and defined key underlying concepts.•We identified a research gap and proposed research questions.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK, ZRSKP
This study investigates how the circular economy and business models are related in the current business and management literature. Based on bibliometric analytical procedures, 253 articles were ...retrieved from the Scopus, Web of Science, and ScienceDirect scientific databases. The articles were analyzed according to network analysis principles, and key terms were mapped into a network. We used VOSviewer to build the network, explore the most‐researched terms and their relationships, and identify less‐explored terms and research gaps. We furthermore conducted a qualitative review of selected publications to provide an illustration of quantitative results and delve deeper into the research topics. The main findings revealed the networks of current topics as they appear in the publications such as business models, the circular economy, circular business models, value, supply chain, transition, resource, waste, and reuse, and their most prevalent relationships. The results also highlighted several emerging topics such as those connected with managerial, supply‐side, demand‐side, networking, performance, and contextual considerations of circular business models.
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BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SBCE, SBMB, UL, UM, UPUK
Focusing on the role of efficiency and novelty design themes, this paper examines how (a) the initial business model of a start-up, (b) the subsequent changes in the design themes and (c) the ...combinative effect of efficiency and novelty (contextual ambidexterity) impact a start-up's growth performance. The study is based on a survey involving 267 new ventures from high-tech industries. The results highlight the importance of pursuing higher efficiency over the life cycle of a start-up, although not at the moment of its establishment. In relation to business model ambidexterity, the findings highlight the different effect that contextual ambidexterity can have on the growth performance of a start-up firm in different stages of its life cycle. While initial ambidexterity is found to have a negative effect on growth performance, successive increases in the level of ambidexterity have a positive influence on growth.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
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