Circular economy: laying the foundations for conceptual and theoretical development in management studies

Purpose This article develops conceptual and paradigmatic clarity in the circular economy literature from a management studies perspective. Design/methodology/approach This article uses a systematic literature review for analysing how circular economy is currently understood. It also reflects on how to establish paradigmatic anchoring of the circular economy in the management field. Findings Multiple definitions of the circular economy exist, but they depict the circular economy narrowly and fail to incorporate aspects of competitiveness and profitability. Additionally, most of sustainability management research displays shortcomings in the way this literature frames the organisation–nature relationship. Research limitations/implications his article aims to support conceptual and theoretical development in the circular economy literature and highlights opportunities for enhanced competitiveness and profitability deriving from circular business model innovation. However, further research is welcomed to assess this connection. Practical implications The conceptualisation of the circular economy proposed in this study emphasises aspects of competitiveness and profitability, which is of relevance to management practitioners. Originality/value This study addresses current shortcomings in how the circular economy is conceptualised. As a result, it proposes a more comprehensive conceptualisation which also includes competitiveness and profitability aspects and, thereby, is relevant from a management studies perspective. It also provides paradigmatic anchoring to the circular economy concept by suggesting that the sustaincentric paradigm, which has received limited scholarly attention so far, is suitable to inform circular economy research and practice

A Conceptualisation of Circular Business Models and Explanation of Their Adoption: Evidence From Four In-Depth Case Studies

The scale of the ecological crisis and a combination of socio-economic and regulatory trends (rising global demand for goods, increasing resource price volatility and legislative efforts to reduce waste), are severely undermining the viability of linear operating business models which rest on a take-make-dispose logic. It is within this context that the circular economy gains relevance by proposing more resource efficient industrial processes that mirror the cyclical functioning of the eco-system where waste does not occur. A crucial constituent in the achievement of a circular economy is business model innovation. However, the academic literature on sustainable business models is still in its early days and pays very little attention to the circular economy and to circular business models. Hence, this research contributes to the sustainable business models literature by proposing a conceptualisation of circular business models and by illustrating the processes leading to their emergence and development. Organisational (resources and capabilities) and institutional (regulatory, normative and cognitive) perspectives have been applied mostly separately in the management literature examining why companies pursue ecological and social sustainability goals. This research attempts to reconcile the above agency versus structure dichotomy in explaining the adoption of circular business models. To accomplish this task, a qualitative, hermeneutical study has been conducted. Four holistic British case studies, considered as a form of contextualised explanation and chosen via purposive selection, delineate this research strategy. Participant observations, shadowing and semi-structured interviews (n=33) are the methods used for collecting primary data. Using narrative and comparative analyses, this thesis conceptualises circular business models as characterised by enhanced customers’ value, diffused and interconnected value creation, boundary spanning relational structures and idiosyncratic value capture mechanisms. It finds that their emergence and development is dependent on a combination of organisational and institutional influences

Circular economy business models: A repertoire of theoretical relationships and a research agenda

The shift towards a more resource efficient circular economy has become a necessity in the wake of current ecological, economic and social sustainability challenges. Mirroring circular-related developments in policy and business quarters, the circular economy literature is growing as a distinct field of academic enquiry. Yet, the conceptual and theoretical foundations of circular economy thinking need consolidation. Drawing from strategic management, sustainability transitions and systems theories, this article establishes some theoretical anchoring for circular economy business models. It finds that circular business models contribute to an understanding of both competitive advantage and the systemic nature of business. It also develops a future agenda for management research at the interface between the circular economy and business models

Business and natural environment in the Anthropocene: is the circular economy the way forward?

As humanity has entered the Anthropocene - a new geological epoch marked by an unprecedented human impact upon planet Earth - questions arise about the relevance of extant management research in guiding environmentally sustainable corporate outcomes. Management studies have rarely looked beyond the boundaries of the social sciences disciplines to theorise about sustainable development. Yet for the latter to be achieved, more transdisciplinary efforts are required. This article draws on circular economy principles to suggest some constructs to build a theory of sustainability management research in the Anthropocene. By enlightening the correlation existing between circular economy principles and functional principles in nature, it also contributes to advance the conceptual foundations of the circular economy, which remain poorly investigated

Circular economy business models as resilient complex adaptive systems

Broad consensus seems to have emerged on the circular economy as a plausible and desirable solution to build prosperity while respecting ecological boundaries. However, its implementation in industry is slow paced. Whilst the systemic nature of the innovation required and barriers to implementation in complex sustainability transitions partially explain why this is the case, reflecting on the contribution of the growing scholarly literature on circular business models to orient management practice is also relevant. In fact, despite the existence of a fairly voluminous scholarly literature on the subject, practitioners are either uncertain or struggling about how to implement circular economy strategies and models. Using an integrative research approach to theory building and drawing on systems theory, this article proposes a resilient complex adaptive system view of circular business models. The resulting framework is a stepping-stone to overcoming conceptual ambiguities and construct fallacies in the way circular business models are typified