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Circular business model: Breaking down barriers towards sustainable development

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  • Graziela Darla Araujo Galvão
  • Steve Evans
  • Paulo Sergio Scoleze Ferrer
  • Marly Monteiro de Carvalho

Abstract

Barriers to circular economy implementation are adversities that organizations, in general, cannot overcome. Other adversities are relative, that is, true within a particular context of some organizations. In this sense, they would be—in fact—obstacles, which can emerge as a competitive differential for those organizations that have or develop internal capacity to overcome them. The article aims to explore how barriers integrate solutions to face barriers or obstacles in the company and whether this brings a competitive advantage. In order to achieve the aim, 40 interviews were carried out in companies that already have implemented a circular economy in manufacturing strategy. The results suggest that absolute barriers emerge as an extreme theoretical reference of minor occurrence in practice (outliers). However, obstacles are ordinary and frequent events, which can be converted into a competitive advantage as appropriate operations strategies are incorporated into the circular business model to achieve sustainable development.

Suggested Citation

  • Graziela Darla Araujo Galvão & Steve Evans & Paulo Sergio Scoleze Ferrer & Marly Monteiro de Carvalho, 2022. "Circular business model: Breaking down barriers towards sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1504-1524, May.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:4:p:1504-1524
    DOI: 10.1002/bse.2966
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    5. Fabio Neves Puglieri & Rodrigo Salvador & Omar Romero‐Hernandez & Edmundo Escrivão Filho & Cassiano Moro Piekarski & Antonio Carlos de Francisco & Aldo Roberto Ometto, 2022. "Strategic planning oriented to circular business models: A decision framework to promote sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3254-3273, November.
    6. Roope Husgafvel, 2023. "Company Perspectives on Circular Economy Management, Assessment and Reporting in the Kymenlaakso Region in Finland," Sustainability, MDPI, vol. 16(1), pages 1-23, December.
    7. Ahmad, Farhan & Bask, Anu & Laari, Sini & Robinson, Craig V., 2023. "Business management perspectives on the circular economy: Present state and future directions," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    8. Bocken, Nancy & Konietzko, Jan, 2022. "Circular business model innovation in consumer-facing corporations," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    9. Eulalia Skawińska & Romuald I. Zalewski & Joanna Wyrwa, 2023. "Students’ Food Consumption Behavior during COVID-19 Lockdown," Sustainability, MDPI, vol. 15(12), pages 1-28, June.
    10. Swee Kuik & Akhil Kumar & Li Diong & Joowon Ban, 2023. "A Systematic Literature Review on the Transition to Circular Business Models for Small and Medium-Sized Enterprises (SMEs)," Sustainability, MDPI, vol. 15(12), pages 1-22, June.

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