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Transition to the circular economy: the story of four case companies

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  • Patricia van Loon
  • Luk N. Van Wassenhove

Abstract

Shifting from a linear sales model to a circular service-based business model is far from straightforward. Many challenges accrue in the transition process, including finding the right market for the recirculated product/service, setting up the reverse supply chain, selecting the right partners, and making sure the new business model is sustainable in the short, medium and long term. This paper discusses the challenges of four companies trying to close the loop while preserving current profit levels. It describes their initial ideas on how the circular business model should be designed, the process they went through, challenges faced, and the eventual outcome. Based on the learnings of the four case companies, we summarise recommendations about preparatory steps required before making the transition towards a circular business model.

Suggested Citation

  • Patricia van Loon & Luk N. Van Wassenhove, 2020. "Transition to the circular economy: the story of four case companies," International Journal of Production Research, Taylor & Francis Journals, vol. 58(11), pages 3415-3422, June.
    • Handle: RePEc:taf:tprsxx:v:58:y:2020:i:11:p:3415-3422
    DOI: 10.1080/00207543.2020.1748907
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    Citations

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    Cited by:

    1. Gabi Försterling & Ronald Orth & Benjamin Gellert, 2023. "Transition to a Circular Economy in Europe through New Business Models: Barriers, Drivers, and Policy Making," Sustainability, MDPI, vol. 15(10), pages 1-40, May.
    2. José M. Moneva & Sabina Scarpellini & Alfonso Aranda‐Usón & Igor Alvarez Etxeberria, 2023. "Sustainability reporting in view of the European sustainable finance taxonomy: Is the financial sector ready to disclose circular economy?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1336-1347, May.
    3. Patricia van Loon & Luk N. Van Wassenhove & Ales Mihelic, 2022. "Designing a circular business strategy: 7 years of evolution at a large washing machine manufacturer," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1030-1041, March.
    4. Jacek Wysocki & Pawel Dec, 2021. "Pro-Ecological Initiatives and Profitability of Manufacturing Enterprises," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 57-74.
    5. 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).
    6. Eleonora Santos & Inês Lisboa, 2022. "The Effects of Subsidies on MSW Treatment Companies: Financial Performance and Policy Implications," Sustainability, MDPI, vol. 14(5), pages 1-22, March.
    7. Kris Hartley & Jasper Roosendaal & Julian Kirchherr, 2022. "Barriers to the circular economy: The case of the Dutch technical and interior textiles industries," Journal of Industrial Ecology, Yale University, vol. 26(2), pages 477-490, April.
    8. Andrea Pronti & Emy Zecca & Davide Antonioli, 2024. "Micro is beautiful. Adoption of eco‐innovations in micro‐firms," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1341-1368, February.
    9. Pereira, Vijay & Nandakumar, M.K. & Sahasranamam, Sreevas & Bamel, Umesh & Malik, Ashish & Temouri, Yama, 2022. "An exploratory study into emerging market SMEs’ involvement in the circular Economy: Evidence from India’s indigenous Ayurveda industry," Journal of Business Research, Elsevier, vol. 142(C), pages 188-199.
    10. Dindayal Agrawal & Ashish Dwivedi & Anchal Patil & Sanjoy Kumar Paul, 2023. "Impediments of product recovery in circular supply chains: Implications for sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1618-1637, June.
    11. Reza Zanjirani Farahani & Nasrin Asgari & Luk N. Van Wassenhove, 2022. "Fast Fashion, Charities, and the Circular Economy: Challenges for Operations Management," Production and Operations Management, Production and Operations Management Society, vol. 31(3), pages 1089-1114, March.

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