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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This study furthers game-based learning for circular business model innovation (CBMI), the complex, dynamic process of designing business models according to the circular economy principles. The study explores how game-play in an educational setting affects learning progress on the level of business model elements and from the perspective of six learning categories. We experimented with two student groups using our game education package Re-Organise. All students first studied a reader and a game role description and then filled out a circular business model canvas and a learning reflection. The first group, i.e., the game group, updated the canvas and the reflection in an interactive tutorial after gameplay. The control group submitted their updated canvas and reflection directly after the interactive tutorial without playing the game. The results were analyzed using text-mining and qualitative methods such as word co-occurrence and sentiment polarity. The game group created richer business models (using more waste processing technologies) and reflections with stronger sentiments toward the learning experience. Our detailed study results (i.e., per business model element and learning category) enhance understanding of game-based learning for circular business model innovation while providing directions for improving serious games and accompanying educational packages.
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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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