Circular business model implementation: A capability development case study from the manufacturing industry. (19th October 2021)

• Record Type: Journal Article
• Authors: Reim, Wiebke; Sjödin, David; Parida, Vinit
• Other Names: Fraccascia Luca guestEditor.; Giannoccaro Ilaria guestEditor.; Agarwal Abhishek guestEditor.; Hansen Erik G. guestEditor.
• Is Part Of: Business strategy and the environment. Volume 30:Number 6(2021)
• Page Start: 2745
• Page End: 2757
• Publication Date: 2021-10-19
• Subjects: capabilities -- circular business models -- decision making -- product–service systems -- service network -- servitization; Industrial management -- Environmental aspects -- Periodicals; Industries -- Environmental aspects -- Periodicals; 658.4083
• DOI: 10.1002/bse.2891
• Languages: English
• ISSNs: 0964-4733

Abstract

Abstract: Circular business models (CBMs) have huge potential to deliver economic, social, and environmental benefits, but CBMs have yet to be implemented widely in industrial settings. One reason is that they are often presented as one‐size‐fits‐all solutions, but this is misplaced because product‐specific criteria and company capabilities determine the correct choice and implementation of CBMs. Therefore, the purpose of this paper is to investigate how CBM selection and capability development facilitates the implementation of CBMs. For this purpose, we have adopted a qualitative research approach and undertaken 25 explorative interviews in three large Swedish manufacturing companies. In this paper, a CBM implementation framework consisting of two parts has been developed. The first part addresses the choice of the appropriate CBM based on tactical configurations. The second part provides a capability development path by explicating underlying routines that need to be progressively developed in order to move smoothly to more advanced CBMs.