In our in-depth case study on two circular business models we found important roles for material scouts and networks. These key partners are essential for establishing circular business models and circular flow of materials. Besides, we diagnose that companies are having difficulties to develop viable value propositions and circular strategies. The paper was presented at NBM Nijmegen 2020 and will be published at a later date
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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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This report describes the Utrecht regio with regard to sustainability and circular business models.
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The Dutch government and leading academics in the field of circular economy propose that “repurposing”, i.e., finding new usages for discarded material, is important to reduce resource usage. Waste collectors, municipalities and start-ups increasingly find ways to develop circular business models, aiming for minimum loss of material integrity. Repurpose is a circular business model strategy which entails using a discarded product or its parts in a new product with a different function.The aim of this research is to gain a better understanding of this promising but academically underexposed circular strategy by empirically exploring its key characteristics and developing a taxonomy that reflects the scope and potential of the concept. The taxonomy development was based on clustering and comparing 96 case examples using key characteristics and critical factors empirically collected by means of 11 semi-structured expert interviews. The taxonomy was iteratively refined and validated by means of workshops with experts.This paper proposes a taxonomy and a comprehensive definition for repurposing. The Repurpose taxonomy distinguishes three main categories with increasing levels of material integrity: “Reprocess”, “Reshape” and “Recontextualize”. The taxonomy provides a refinement of existing circular business model patterns and frameworks for closing material loops strategies. It shows how repurposing may exploit the creative potential of design to fill the gap between reuse and recycling by retaining previously added value with three levels of physical adjustment.
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A rise in global population and welfare is depleting the earth’s resources and challenging the current predominantly linear economy, following a take-make-waste pattern, calling upon a shift towards a more circular economy (Bastein and Willems, 2019; Ellen MacArthur Foundation, 2013; Lüdeke-Freund et al., 2019). The Dutch government and the European Union have set the goal/ambition to become fully circular by 2050 thus striving towards a cleaner economy and reducing the dependency on scarce resources (European Commission, 2020; Government of Netherlands, 2016).
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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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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 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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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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