Business models’ dynamics through implementation of circular economy strategies

Abstract

The presented dissertation examines the dynamics of changes in business logic and business models’ architecture associated with the implementation of sustainability related activities, specifically circular economy strategies, with a focus on reducing the amount of unused waste. Business models, being abstract concepts of the business logic, are made up of dynamically changing elements of value proposition, creation, delivery, capture and communication of value created. Businesses are motivated by pressures in society, as well as in their immediate ecosystem, to actively implement circular economy principles and strategies into their business models. The dissertation conceptually captures the issue of business models’ dynamics – what are business models’ dynamics, how are they defined, what possible forms do they take. It explicitly extends the concept of business model for circular economy with a key element value communication. In the application part it analyses, drawing mainly on case studies and quantitative analyses, the evolution of business models’ adaptation related to the implementation of circular economy strategies by companies operating in manufacturing industries, and impact of the strategies on business models. It studies the adaptation of the business models from the temporal and the content point of view. It studies the dynamics of the relations among the elements of business models. The theoretical framework of the dissertation is the Attention Based View Theory, as well as the Legitimacy Theory. The key output of the dissertation is the proposal of a methodology for determining business models’ dynamics through the implementation of selected circular economy strategies. It proposes a business model dynamics index IOMDRi. The methodology allows to quantitatively determine the business models elements’ structure, to quantitatively determine the implemented circular economy strategies, as well as to compare the impact of selected circular economy strategies on the business model and its elements – on a company level, among the companies in a particular industry, and among the industries. A mixed qualitative-quantitative research strategy is applied, using mainly case studies and observations carried out in a selected European manufacturing sector of decorative and information systems (DIS), quantitative content analyses and questionnaire-based surveys