Circular business model innovation – a process framework and a tool towards more circular economy

Abstract

Circular economy can play a vital role to solve the material scarcity, environmental and social problems but it needs new business models. However, the existing methods for business model innovation are not competent in that perspectives. Thus, the purpose of the research is to improve circular business model innovation method and process. In this thesis, critical literature review and case study are used as the research strategy. A process framework and a tool for circular business model innovation are developed after collecting and analyzing secondary data. Again, collection of primary data from two cases result in two business models and a list of barriers for transition towards circular economy. The Business Combo Model, which is developed and introduced in this study, is comparatively more effective tool for innovating circular business models. It integrates system thinking, sustainability impacts and competitor analysis with other basic components of business model. It allows practitioners to visualize and understand the whole system easily and let them to innovate better business models. In addition, the study introduces 5 I framework which presents the systematic way for circular business model innovation process. Again, a list of barriers which managers may face in the process of circular business model innovation is also included. Moreover, this is the first study regarding circular economy in Bangladesh. Companies may take this study as a guide to think creatively to establish their business in a new paradigm.