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Value creation in circular economy business for sustainability: A stakeholder relationship perspective

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  • Riikka Tapaninaho
  • Anna Heikkinen

Abstract

A circular economy (CE) requires companies to rethink their value creation and stakeholder relationships. While value creation in a CE business is typically understood from a company‐centric perspective, this article utilises stakeholder theory to conceptualise value creation as a relational, systemic activity involving multiple stakeholder relationships. We conduct a case study of the CE business development of a Finnish energy company and offer novel insights by identifying five joint value creation activities: sharing the CE story, co‐constructing knowledge for political decision‐making, developing the industry, creating local CE ecosystems and refining the business model. Additionally, we define the concept of multidimensional value, which acknowledges multifaceted, subjective stakeholder value expectations and enables the engagement of stakeholders in joint value creation activities. We conclude that the stakeholder relationship perspective on CE business value creation allows for the creation of the synergy necessary to advance CE business and sustainability.

Suggested Citation

  • Riikka Tapaninaho & Anna Heikkinen, 2022. "Value creation in circular economy business for sustainability: A stakeholder relationship perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2728-2740, September.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:6:p:2728-2740
    DOI: 10.1002/bse.3002
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    References listed on IDEAS

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    1. Manish Mohan Baral & Subhodeep Mukherjee & Rajesh Kr Singh & Venkataiah Chittipaka & Yigit Kazancoglu, 2023. "Exploring antecedents for the circular economy capability of micro, small and medium enterprises: An empirical study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5785-5806, December.
    2. Yasanur Kayikci & Yigit Kazancoglu & Nazlican Gozacan‐Chase & Cisem Lafci, 2022. "Analyzing the drivers of smart sustainable circular supply chain for sustainable development goals through stakeholder theory," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3335-3353, November.
    3. Chamari Pamoshika Jayarathna & Duzgun Agdas & Les Dawes, 2023. "Exploring sustainable logistics practices toward a circular economy: A value creation perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 704-720, January.
    4. Rajat Panwar & Eva Niesten, 2022. "Jump‐starting, diffusing, and sustaining the circular economy," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2637-2640, September.
    5. Schultz, Felix Carl & Valentinov, Vladislav & Kirchherr, Julian & Reinhardt, Robert Jaroslav & Pies, Ingo, 2024. "Stakeholder governance to facilitate collaboration for a systemic circular economy transition: A qualitative study in the European chemicals and plastics industry," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 33(3), pages 2173-2192.
    6. Navid Zarbakhshnia & Kannan Govindan & Devika Kannan & Mark Goh, 2023. "Outsourcing logistics operations in circular economy towards to sustainable development goals," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 134-162, January.
    7. Xingwei Li & Jiachi Dai & Xiaowen Zhu & Jinrong He & Jingru Li & Xiang Liu & Yicheng Huang & Qiong Shen, 2022. "What Is the Mechanism of Government Green Development Behavior Considering Multi-Agent Interaction? A Meta-Analysis," IJERPH, MDPI, vol. 19(14), pages 1-16, July.
    8. Thanh Tiep Le & Abhishek Behl & Gary Graham, 2023. "The Role of Entrepreneurship in Successfully Achieving Circular Supply Chain Management," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(4), pages 537-561, December.
    9. Tran Thi Van Trang & Mai Ngoc Khuong, 2023. "The role of risk factors, partner compatibility, organizational creativity and co-creation value on firm performance: evidence from SMEs in Vietnam," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 41(2), pages 449-475.
    10. Gabriela Almeida Marcon Nora & Anete Alberton & Diego Hernando Florez Ayala, 2023. "Stakeholder theory and actor‐network theory: The stakeholder engagement in energy transitions," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 673-685, January.
    11. Subhalaxmi Mohapatra & Subhadip Roy & Arvind Upadhyay & Anil Kumar, 2024. "Circular value creation through environmental entrepreneurship initiatives: A case‐based exploration," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 3811-3831, July.
    12. Fabio Zagonari, 2024. "Sustainable business models and conflict indices for sustainable decision‐making: An application to decommissioning versus reusing offshore gas platforms," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 180-196, February.
    13. Albérico Travassos Rosário & Paula Lopes & Filipe Sales Rosário, 2024. "Sustainability and the Circular Economy Business Development," Sustainability, MDPI, vol. 16(14), pages 1-24, July.
    14. Cabral, Natália Gomes Cavalcante & Gohr, Cláudia Fabiana, 2023. "Sustainable value creation in sharing economy: Conceptual framework proposition and application in Brazilian offline communities," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).

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