Review    Peer-Reviewed

Circular Business Model Frameworks: A Review

Md Tasbirul Islam 1,* , Usha Iyer-Raniga 2 and Amjad Ali 1
Interdisciplinary Research Center for Sustainable Energy Systems (IRC-SES), King Fahd University of Petroleum and Minerals (KFUPM), Dhahran 31261, Saudi Arabia
School of Property Construction and Project Management, RMIT University, 124 La Trobe Street, Melbourne VIC 3000, Australia
For correspondence.
Academic Editor:
Highlights of Sustainability, 2024, 3(2), 129–162.
Received: 31 October 2023    Accepted: 9 April 2024    Published: 18 April 2024
The circular business model (CBM) concepts are vast, interconnected, and emerging. Research to date has been somewhat fragmented, and there would be value in focusing on the systemic identification of the connectivity of the topics around CBM. Furthermore, the business model innovation (BMI) process and business model implementation were identified as two separate spectra of research that should be seen collectively and added to the literature. This article reviewed 256 articles (solely focusing on “CBM frameworks”) published between 2007 and mid-2022, collected from the Scopus database, and analyzed using the content analysis method to identify the research gap/s. Results showed that under circular business model innovation (CBMI), the innovation process and their associated process modeling, archetypes, tools, experimentation, digitalization, and innovation via the inclusion of circular economy (CE) principles and sustainability in BMI were highlighted. From the CBM adoption/implementation perspectives, business ecosystem, technological innovation, product lifecycle management, CBM value dimensions (e.g., value proposition, value creation, and delivery), organizational capabilities, and dynamics were investigated. Topics around sustainability and circularity principles, strategies and organizational performance, CBM value streams, digitalization, and product-service systems were topical issues of the circular supply chain (CSC). A conceptual framework for gaining circular competencies integrating all elemental issues throughout the CBM development process (e.g., innovation, adoption within CSC) has been progressed. Based on the review, this article defined a circular business model as a business model that fundamentally applies one or more of the principles of CE at various product/service/material lifecycle stages, for which sustainability-focused technological innovation, collaboration among business ecosystem partners, and enhanced dynamic capabilities of any organization are prerequisites. Several research gaps were identified with potential avenues for future research directions, which will be helpful for policymakers, business organizations, and researchers.
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Copyright © 2024 Islam et al. This article is distributed under the terms of the Creative Commons Attribution License (CC BY 4.0), which permits unrestricted use and distribution provided that the original work is properly cited.
The second author acknowledges research-related support from the Victorian State Government through the Victorian Higher Education State Investment Fund (VHESIF).
Cite this Article
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