This paper seeks to make a contribution to business model experimentation for sustainability by putting forward a relatively simple tool. This tool calculates the financial and sustainability impact based on the SDG’s of a newly proposed business model (BM). BM experimentation is described by Bocken et al. (2019) as an iterative-multi-actor experimentation process. At the final experimentation phases some form of sustainability measurement will be necessary in order to validate if the new proposed business model will be achieving the aims set in the project. Despite the plethora of tools, research indicates that tools that fit needs and expectations are scarce, lack the specific focus on sustainable BM innovation, or may be too complex and demanding in terms of time commitment (Bocken, Strupeit, Whalen, & Nußholz, 2019a). In this abstract we address this gap, or current inability of calculating the financial and sustainability effect of a proposed sustainable BM in an integrated, time effective manner. By offering a practical tool that allows for this calculation, we aim to answer the research question; “How can the expected financial and sustainability impact of BMs be forecasted within the framework of BM experimentation?
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Across Dutch municipalities, unusual collaborative initiatives emerge that aim to stimulate the creation of value from municipal waste resources. Circular economy literature proposes that experimentation competences are important for developing initiatives towards circular business models and a wide range of innovation frameworks and business model toolkits have been developed to support the development of circular business models based on experimentation.However, more insight is needed to understand how experimentation contributes to the development of urban upcycling initiatives, in particular those where collaborative business models are created. Literature suggest that business model experimentation occurs differently in various collaborative contexts. For example, depending on the type of initiating focal actors involved, collaborative business models develop along different pathways Therefore, we aim to understand how experimentation occurs in various types of collaborative urban upcycling initiatives and we investigate the following research question: How do stakeholders in collaborative urban upcycling initiatives use experimentation to develop circular business models?
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The viability of novel network-level circular business models (CBMs) is debated heavily. Many companies are hesitant to implement CBMs in their daily practice, because of the various roles, stakes and opinions and the resulting uncertainties. Testing novel CBMs prior to implementation is needed. Some scholars have used digital simulation models to test elements of business models, but this this has not yet been done systematically for CBMs. To address this knowledge gap, this paper presents a systematic iterative method to explore and improve CBMs prior to actual implementation by means of agent-based modelling and simulation. An agent-based model (ABM) was co-created with case study participants in three Industrial Symbiosis networks. The ABM was used to simulate and explore the viability effects of two CBMs in different scenarios. The simulation results show which CBM in combination with which scenario led to the highest network survival rate and highest value captured. In addition, we were able to explore the influence of design options and establish a design that is correlated to the highest CBM viability. Based on these findings, concrete proposals were made to further improve the CBM design, from company level to network level. This study thus contributes to the development of systematic CBM experimentation methods. The novel approach provided in this work shows that agent-based modelling and simulation is a powerful method to study and improve circular business models prior to implementation.
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This article seeks to contribute to the literature on circular business model innovation in fashion retail. Our research question is which ‘model’—or combination of models—would be ideal as a business case crafting multiple value creation in small fashion retail. We focus on a qualitative, single in-depth case study—pop-up store KLEER—that we operated for a duration of three months in the Autumn of 2020. The shop served as a ‘testlab’ for action research to experiment with different business models around buying, swapping, and borrowing second-hand clothing. Adopting the Business Model Template (BMT) as a conceptual lens, we undertook a sensory ethnography which led to disclose three key strategies for circular business model innovation in fashion retail: Fashion-as-a-Service (F-a-a-S) instead of Product-as-a-Service (P-a-a-S) (1), Place-based value proposition (2) and Community as co-creator (3). Drawing on these findings, we reflect on ethnography in the context of a real pop-up store as methodological approach for business model experimentation. As a practical implication, we propose a tailor-made BMT for sustainable SME fashion retailers. Poldner K, Overdiek A, Evangelista A. Fashion-as-a-Service: Circular Business Model Innovation in Retail. Sustainability. 2022; 14(20):13273. https://doi.org/10.3390/su142013273
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The purpose of the model is to explore the influence of the design of circular business models (CBMs) on CBM viability. The model represents an Industrial Symbiosis Network (ISN) in which a processor uses the organic waste from suppliers to produce biogas and nutrient rich digestate for local reuse. CBM viability is expressed as value captured (e.g., cash flow/tonne waste/agent) and the survival of the network over time (shown in the interface).In the model, the value captured is calculated relative to the initial state, using incineration costs as a benchmark. Moderating variables are interactions with the waste incinerator and actor behaviour factors. Actors may leave the network when the waste supply for local production is too low, or when personal economic benefits are too low. When the processor decides to leave, the network fails. Theory of planned behaviour can be used to include agent behaviour in the simulations.
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Pressure on natural resources, unsustainable production and consumption, inequality and a growing global population lie at the base of the big challenges that people face. This chapter investigates how businesses can take responsibility in dealing with these challenges by means of frugal business model innovation. The notion of ‘frugal innovation’ was first introduced in the context of emerging markets, giving non-affluent customers opportunities to consume affordable products and services suited to their needs. Business modelling with a frugal mindset opens up a path that provides significant value while minimizing the use of resources such as energy, capital and time. Business models require intentional design if they are to deliver aspired sustainability impacts. Diminish or simplify resources can be described as the means to remove or reduce features, resources, required activities and/or waste streams. Decompose can be described as the removal of resources from the commercial value proposition and replacing them with resources the user/consumer already can access or uses. This is an Accepted Manuscript of a book chapter published by Routledge/CRC Press in Circular Economy : Challenges and Opportunities for Ethical and Sustainable Business on 2021, available online: https://doi.org/10.4324/9780367816650
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The aim of this study is to unpack the value of ethnographic research as a relevant methodology for studying and developing new business models. A pop-up store we ran for three months in 2020 served as a testlab to experiment with value creation around buying, swapping and borrowing secondhand clothing. LinkedIn: https://www.linkedin.com/in/kim-aplonia-poldner-a003473/ https://www.linkedin.com/in/overdiek12345/
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Urban areas provide a promising context for upcycling due to the concentration of consumers and existence of bulky waste resources. Hence, upcycling initiatives emerge across European cities, but little is known about their manifestations. Building on interviews with twenty-four stakeholders from the urban upcycling ecosystem and three focus groups sessions, a morphological model was created with internal and external business model characteristics to analyse a database of 172 collected Dutch urban upcycling initiatives in the furniture and interior sector. The morphological analysis led to eleven urban upcycling manifestations with distinct business model characteristics that make up five generic categories and a landscape of urban upcycling which facilitate future research into the topic. A research agenda to study quantitative implications, regional differences, collaborative experimentation and scaling strategies of urban upcycling is proposed. Practically, the typology may facilitate policy makers and practitioners to create, scale or accelerate urban upcycling initiatives.
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We aim to understand how actors respond to field logic plurality and maintain legitimacy through business model innovation. Drawing on a longitudinal field study in the fashion industry, we traced how de novo and incumbent firms incorporate circular logics in business models (for sustainability) and uncover how the intersection between issue and exchange fields creates institutional complexity and experimental spaces for business model innovation. Our findings showed a shift in the discourse on circular logic that diverted attention and resources from materials innovation (e.g., recycling) to business model innovation (e.g., circular business models). By juxtaposing institutional complexity and external pressure to maintain legitimacy, we derived four strategic business model innovation responses—preserve, detach, integrate and extend—that illuminate how actors leverage shifting logics and innovate extant business models (for sustainability). We make novel contributions to the literature on organizational fields, business models for sustainability, and business model innovation.
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The model of the Best Practice Unit (BPU) is a specific form of practice based research. It is a variation of the Community of Practice (CoP) as developed by Wenger, McDermott and Snyder (2002) with the specific aim to innovate a professional practice by combining learning, development and research. We have applied the model over the past 10 years in the domain of care and social welfare in the Netherlands. Characteristics of the model are: the interaction between individual and collective learning processes, the development of (new or better) working methods, and the implementation of these methods in daily practice. Multiple knowledge sources are being used: experiential knowledge, professional knowledge and scientific knowledge. Research is serving diverse purposes: articulating tacit knowledge, documenting the learning and innovation process, systematically describing the revealed or developed ways of working, and evaluating the efficacy of new methods. An analysis of 10 different research projects shows that the BPU is an effective model.
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