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Circular business models in high value manufacturing: Five industry cases to bridge theory and practice
Author(s) -
Okorie Okechukwu,
Charnley Fiona,
Russell Jennifer,
Tiwari Ashutosh,
Moreno Mariale
Publication year - 2021
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.2715
Subject(s) - circular economy , business model , value (mathematics) , value capture , resource (disambiguation) , profit (economics) , business , business value , value creation , industrial organization , marketing , computer science , operations management , economics , microeconomics , machine learning , biology , ecology , computer network
The transition to a circular economy (CE) requires companies to evaluate their resource flows, supply chains, and business models and to question the ways in which value is created. In the high value manufacturing (HVM) sector, this evaluation is critical, as HVM enables value in nonconventional forms, beyond profit, including unique production processes, brand recognition, rapid delivery times, and highly customized services. We investigate the role of value, cost, and other factors of influence in the selection of a circular business model (CBM) for HVM. Explored through five case studies using a qualitative evaluation of circularity, we then contribute to the emerging field of CBMs by modifying the CBM canvas that can capture the nontraditional value, traditional value, cost, and other influencing factors enabled via CBM adoption in HVM. Finally, the important role of digital technologies for incentivizing and enabling CBM adoption, is clarified.