To achieve a transformation toward the circular economy, organizations need to take an ecosystem perspective and consider multiple complementary actors that are needed to deliver circularity as a collective outcome. However, practitioners and scholars lack an understanding of the initial phases of ecosystem creation, in terms of how to get started, and what to consider. We therefore investigate how organizations can initiate an ecosystem for a circular economy. The method consists of a concise review of the ecosystem literature and three instrumental cases, to identify important activities that are needed when initiating an ecosystem for circularity. The cases include: (1) an alliance for circular safety footwear, (2) a startup that turns old coffee ground and orange peel waste from another company into new products, and (3) a multi-stakeholder project aimed at recovering resources from wastewater. We propose a framework for a Minimum Viable Ecosystem for Circularity (MVEC) that includes a set of key activities to perform when building ecosystems for a circular economy. These activities provide a useful roadmap for scholars and practitioners for establishing and assessing ecosystems for circularity. We call for further research and practical applications to test and demonstrate the utility of this framework in different contexts.

The early 2020s have been characterized by multiple convergent crises, including the Covid-19 pandemic and economic fallout of mitigation measures, Russia's invasion of Ukraine, and the ongoing sustainability and climate change crisis. This article discusses how the concept of the circular economy can inform responses to such crises by addressing four elements of a socio-economic system: technological innovation, supply chains and markets, public policy, and consumer behaviour. Synthesizing emerging insights from the scholarly and policymaking arenas, the article identifies the following ways that the circular economy concept can be effectively framed as crisis response: focusing on circularity in a more holistic way, adopting global value chains as the primary unit of analysis, pinpointing specific circularity aspects like drivers and barriers in value chains and business models, and extending the prevailing focus on technical aspects and material flows to often overlooked trade and geopolitical considerations. This discussion aims to articulate lessons for industry, policymakers, and scholars in leveraging a circularity approach to address the world's most pressing issues.

The circular economy aims to decouple economic growth from negative environmental impacts. To achieve this goal, circular economy concepts and policies must be implemented in practice by organizations through new circular business models. However, organizations often fail to implement circular business models on the market at scale. This is a major problem in business innovation practice, while a knowledge gap about the underlying implementation challenges remains in the scientific literature. More research on the subject is needed. The objective of this study is contributing to shed light into the gap with empirical insights. Using an action research method within an EU innovation project, this article proposes a preliminary empirical framework that links the value proposition, creation, delivery, and capture dimensions of a circular business models with specific cultural, regulatory, economic, and technical barriers that might hinder implementation. Based on the framework, four lessons to support managerial action are provided. Future research might build upon this work by systematically collecting and structuring more granular empirical data about the specific reasons why new circular business models fail to be implemented by organizations, across different sectors and geographical areas.

The circular economy aims to decouple growth from environmental impacts by optimizing resource use, minimizing waste and pollution. The European Union (EU) has the ambition to lead a circular economy transition on a global level. Realizing the transition is complex, because it requires substantial and interconnected changes in the current system. Previous literature has identified the main drivers and barriers to a circular economy, categorizing them as technical, economic, regulatory and cultural. Despite its relevance, this literature has a broad focus, not taking into account the characteristics of specific industry sectors. More granular insight is essential to overcome barriers, while leveraging drivers. To this end, research focusing on these drivers and barriers within specific sectors is emerging. However, to date, this research is recent and limited, leaving a large and critical knowledge gap still to be addressed. In this study, we focus on the EU automotive sector. Specifically, in the context of the on-going review of the end-of-life vehicles (ELV) directive, we are carrying out an investigation into the barriers and drivers for increasing the uptake of recycled plastics embedded in new vehicles put on the EU market. Through the analysis of literature and in-depth interviews with key stakeholders (including vehicle manufacturers, suppliers, recyclers, experts and industry associations) we outline the value chain of plastics in the sector, while identifying and explaining specific drivers and barriers to recycling. In this paper we present some initial results of this ongoing effort. From a practice perspective, these results contribute to a better understanding on how to advance circularity in the EU automotive sector. From a theory perspective, the results illustrate how circularity barriers and drivers may be identified at a sectoral level. This may provide future studies with a methodological blueprint to replicate this work in other sectors, as a way to continue addressing the aforementioned knowledge gap.

The current linear economy focuses on a ‘take-make-use-dispose’ paradigm, prioritizing ‘volume-over-value’. Significant planning and experimentation are needed to understand how to develop new business models that are not only ‘circular’, but also desirable for people, technically feasible and financially viable. More insight is needed into the practices of business experimentation to accelerate the transition to a circular economy. We investigate the following: What types of experimentation practices do companies adopt in the transition to a circular business model? Our analysis is based on action research with over 40 organizations. Based on this, we provide an overview of business experimentation practices inside a diverse range of organizations and possible tools, approaches and lessons learned. Recommendations focus on the practices, process, environmental impact assessment, partnering and management of complexity in future tools and methods. We also propose a framework for circular business experimentation and future research directions.

Circular business model experiments may help firms transition towards a circular economy. Little is known about how the participants of experimentation – entrepreneurs, intrapreneurs, innovation managers – develop and test their assumptions during the experimentation process to achieve more circular outcomes. Using a design-science approach, we investigate this process and develop principles to improve it. This is done during three workshops in different contexts: an innovation festival with 14 early-stage circular startups, a workshop with a health technology incumbent, and a workshop with six growth-oriented startups. We find that analyzing their available means – what they find important and prefer to happen (part of their identity), what they know (their skills and knowledge), and whom they know (their social network) – helps to understand how the participants develop and test their assumptions. We show how the mindset and awareness of the participants impact how much attention they pay to the circularity potential of their envisioned circular business models. Based on these insights, we propose a set of principles to prepare the innovation participants for experimentation, and to increase their ability to reflect on their circularity assumptions. Future research is needed to further grow our understanding of the types of principles that can guide meaningful experimentations towards a circular economy.

The intensification of industrial activity within an unsustainable development paradigm caused an alarming environmental crisis intertwined with societal problems on a global scale. Sustainable design theory contains an extensive body of knowledge on how these environmental and societal issues can be addressed by rethinking industrial products, processes and, more broadly, how organizations operate in the context of a more sustainable socio-economic system. Nevertheless, evidence shows that implementing these ideas is a problematic yet under addressed aspect, resulting in a gap between abstract speculations and concrete action. In this study, we focus on this critical gap by looking at how existing theory of sustainable design is implemented in business practice. To this end, we conduct a literature review followed by interviews with twenty international experts, to uncover their knowledge related to relevant project experiences. The outcome is a framework that integrates existing sustainable design theory with important business concepts, clustering it into four literature streams:ecodesign, product service system design, sustainable business model design and collaborative ecosystem design. These streams correspond to four levels of design for sustainable innovation. The framework also encompasses a set of themes related to the implementation of sustainable design theory in business practice across the aforementioned four levels. Based on this, we outline our contributions to theory and practice, and pinpoint recommendations for academic researchers, industrial designers and business managers who want to leverage their professional position to play an active role in the transition toward sustainable development.

Next to the redesign of industrial products and processes, sustainable business model innovation is a strategic approach to integrate environmental and social concerns into the objectives and operations of organizations. One of the major challenges of this approach is that many promising business model ideas fail to reach the market, which is needed to achieve impact. In the literature, the issue is referred to as a “design-implementation gap.” This paper explores how that critical gap may be bridged. In doing so, we contribute to sustainable business model innovation theory and practice. We contribute to theory by connecting sustainable business model innovation with business experimentation and strategic design, two innovation approaches that leverage prototyping as a way to iteratively implement business ideas early on. Using a design science research methodology, we combine theoretical insights from these three literatures into a tool for setting up small-scale pilots of sustainable business models. We apply, evaluate, and improve our tool through a rigorous process by working with nine startups and one multinational company. As a result, we provide normative theory in terms of the sustainable business model innovation process, explaining that piloting a prototype forces organizations to simultaneously consider the desirability (i.e., what users want), feasibility (i.e., what is technically achievable), viability (i.e., what is financially possible), and sustainability (i.e., what is economically, socially and environmentally acceptable) of a new business model. Doing so early on is functional to bridge the design-implementation gap of sustainable business models. We contribute to practice with the tool itself, which organizations can use to translate sustainable business model ideas defined “on paper” into small-scale pilots as a first implementation step. We encourage future research building on the limitations of this exploratory study by working with a larger sample of companies through longitudinal case studies, to further explain how these pilots can be executed successfully.

In the past decades, industrial design practice and research have focused extensively on how to optimize production and consumption, as a way to prevent negative environmental impacts, such as resource depletion, pollution, and excessive waste. Recently, the “circular economy” concept is increasingly used to achieve environmental benefits and economic growth simultaneously. Industrial design can contribute to a circular economy by fostering systems changes to achieve durability, optimal reuse, refurbishment, remanufacturing, and recycling of products and materials. Indeed, researchers have examined both the theoretical and practical aspects of how design knowledge can support the transition to a circular economy. However, this body of knowledge has not been systematically analyzed yet. To address this critical gap, this paper poses the following question: How has industrial design research so far contributed to advancing the circular economy knowledge? Accordingly, we survey relevant design literature focusing on the circular economy, through a review of contributions published in 42 scientific journals. Based on our results, we discuss how industrial design practices can potentially contribute to a circular economy across four thematic areas: (1) design for circular production processes, (2) design for circular consumption, (3) design to support policy towards the circular economy, and (4) design education for the circular economy.

Industrial Symbiosis (IS) is a collective approach to competitive advantage in which separate industries create a cooperative network to exchange materials, energy, water and/or by-products. By addressing issues related to resource depletion, waste management and pollution, IS plays an important role in the transition towards sustainable development. In the literature, two conceptual perspectives on IS can be identified: the Industrial Ecology (IE) and the Circular Economy (CE) perspective. Despite the recognition of these two perspectives, their relationship remains unclear and explicit attempts to develop an integrated perspective have not been made yet. Consequently, the goal of this research is to highlight and start addressing this critical gap of knowledge in order to support future research and practice geared towards the design of new IS clusters. We pose the following research question: How can the IE and CE perspectives on IS be combined in order to support the design of IS clusters? To this end, we first investigate the two perspectives more in depth and compare them in terms of nature, features and relevance for the study of IS. This is done by applying them as conceptual lenses for the analysis of the same case study, an existing IS cluster. The comparative analysis provides insights into how the two perspectives differ, ultimately demonstrating that they are complimentary and both necessary to fully describe an IS cluster. While the CE perspective is more suitable to explain how a cluster functions from a business standpoint in the operating phase, the IE perspective is more suitable to explain its development over time and its impacts on the environment, the economy and society. Building upon the outcomes of the comparative analysis, we leverage on the discipline of Strategic Design and integrate the two perspectives into a process for designing new IS clusters. We suggest two directions for future research. First, improving our comparative analysis of the two perspectives by looking at a wider sample of IS clusters of different sizes and in different contexts. Second, focusing with more specificity on the issue of how IS clusters can be designed, potentially by trying to apply the process we propose on a real case aimed at designing a new IS cluster.

Sustainable business model innovation is about creating superior customer and firm value by addressing societal and environmental needs through the way business is done. Business models require intentional design if they are to deliver aspired sustainability impacts. Scant research has been done on ‘ecologies’ of different business models in order to understand and improve these and create positive impact on the environment, society, economy and other key stakeholders. Hence, in this paper a novel framework is presented to enable a systemic form of sustainable business model experimentation. The framework is based on the recognition of three key issues which have not yet been sufficiently incorporated in the literature on sustainable business models: construct clarity, boundary setting and uncertainty about outcomes. These concepts are discussed first. Building on earlier work, the resulting framework incorporates potential side-effects and boundary setting based on the concept of an ‘ecology of business models’. Second, an approach is proposed that could stimulate more profound forms of sustainable business model innovation: The Ecology of Business Models Experimentation map. Third, the approach is illustrated through two cases. The approach could help minimise symbiotic dependency on less sustainable business models; help destroy unsustainable business models by outcompeting them; and maximise contributions to favourable institutional infrastructures for more sustainable business models. This paper contributes to research on sustainable business model innovation, design and experimentation by providing a potential approach for ‘business model ecology redesign’.

With an increasing population, a growing middle class and increased resource use, our current ways of living and doing business are unsustainable. Next to the implementation of innovative technology, sustainable development based on innovative business models, better understating of customer needs and behavioural change are crucial. This research aims at combining principles from both sustainable business model innovation and user-driven innovation to develop more successful, radical and user-centred sustainable value propositions. Sustainable business model innovation entails developing value propositions that create value for multiple stakeholders at the same time, including customers, shareholders, suppliers and partners as well as the environment and society. User-driven innovation allows developing solutions that are meaningful for people and profitable for business by involving potential customers, users and/or other stakeholders in an experimental and iterative design process. The study adopts a research through design methodology, a qualitative research approach that uses design practice to inform research. To this end, a design project in the framework of the Climate-KIC (the largest European partnership addressing the challenge of climate change) was investigated. As a result, this paper proposes a process for sustainable value proposition design which adopts a thorough, dynamic and iterative perspective (talking to stakeholders, thinking about the problem, testing the product/service) that leads to an actual sustainable value proposition and to a superior problem-solution fit. In practice, managers are provided with an initial methodological framework for mapping and understanding the stakeholders in a broad sense (including and especially users), identifying their needs and interests, and progressively combining them into a more meaningful and enriching value proposition.