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Assessing sustainability opportunities for circular business models

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  • Elizaveta Averina
  • Johan Frishammar
  • Vinit Parida

Abstract

As the unfolding climate crisis escalates, incumbent manufacturing companies are increasingly sensing and seizing sustainability opportunities—ideas that help to generate value in a more sustainable way than existing alternatives. Prior literature has underscored the importance of opportunity recognition and has theorized various types of circular business models to address sustainability in practice. However, there is a knowledge gap regarding the step in between: undertaking an assessment that provides a foundation for subsequently pursuing a circular business model. Based on a multiple case study of four innovation projects pursuing sustainability, this article identifies capability assessment, ecosystem alignment, and value‐capture viability as key dimensions in evaluating sustainability opportunities prior to circular business model design and development. These insights are aggregated into a framework that allows companies to conduct a systematic assessment of sustainability opportunities in practice. The framework provides new theoretical implications for the literature on circular economy and business model innovation, and it offers hands‐on advice for management practice.

Suggested Citation

  • Elizaveta Averina & Johan Frishammar & Vinit Parida, 2022. "Assessing sustainability opportunities for circular business models," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1464-1487, May.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:4:p:1464-1487
    DOI: 10.1002/bse.2964
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    Cited by:

    1. Barbara Brenner & Daria Drdla, 2023. "Business Model Innovation toward Sustainability and Circularity—A Systematic Review of Innovation Types," Sustainability, MDPI, vol. 15(15), pages 1-20, July.
    2. 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.
    3. Chen, Su & Shen, Wenbin & Qiu, Zhiqiang & Liu, Rongzhi & Mardani, Abbas, 2023. "Who are the green entrepreneurs in China? The relationship between entrepreneurs’ characteristics, green entrepreneurship orientation, and corporate financial performance," Journal of Business Research, Elsevier, vol. 165(C).
    4. Bocken, Nancy & Konietzko, Jan, 2022. "Circular business model innovation in consumer-facing corporations," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    5. Mostaghel, Rana & Oghazi, Pejvak & Lisboa, Ana, 2023. "The transformative impact of the circular economy on marketing theory," Technological Forecasting and Social Change, Elsevier, vol. 195(C).

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