Circular business model implementation: Design choices, orchestration strategies, and transition pathways for resource-sharing solutions

Maximilian Palmié, Jonas Boehm, Charlotte-Katharina Lekkas, Vinit Parida*, Joakim Wincent, Oliver Gassman

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

1 Citation (Scopus)

Abstract

Prominent political and societal stakeholders argue that business models (BMs) are pivotal in making a successful transition to a circular economy (CE). However, the existing CE literature has paid little attention to design choices that allow companies to implement circular business models (CBMs) that meet the requirements of their specific situations. Resource sharing (alternatively called asset sharing) is a key practice in making the transition to a CE. The present article, therefore, seeks to gain deeper insights into the CBMs of firms that orchestrate resource-sharing solutions. For this purpose, it uses a qualitative multiple case-study approach and analyzes nine firms that orchestrate virtual power plants in Germany and Switzerland. Specifically, the article explores the design choices with which firms are faced when they implement CBMs, and it examines different implementation strategies that flow from making certain design choices. The article also identifies transition pathways that enable firms to move between different implementation strategies in order to increase economic and environmental gains. The present article can serve as a stimulus for further detailed analyses of other BMs that are important to a CE in the future.
Original languageEnglish
Article number124399
Peer-reviewed scientific journalJournal of Cleaner Production
Volume280
Issue numberPart 2
Number of pages12
ISSN0959-6526
DOIs
Publication statusPublished - 28.09.2020
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • Circular business model
  • Value creation and delivery
  • Resource sharing
  • Circular economy
  • Resource modification
  • Virtual power plant

Areas of Strength and Areas of High Potential (AoS and AoHP)

  • AoHP: Strategic and entrepreneurial praxis

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