Circular Business Model Patterns and their Relevance towards a more Circular Economy

A case survey of 34 circular companies

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Abstract

With tackling the problems of resource depletion and waste, the currently booming topic of a circular economy (CE) comes up. This concept goes beyond the processes of reusing and recycling products and looks at the entire material and energy loops of products. The current economy, or linear economy, is still the status quo where products are used in a take-make-use-dispose manner. It is time for businesses to become part of the CE by designing circular business models (CBMs). This thesis studied circular business model patterns (CBMPs) in scientific literature and in business practice. CBMPs are building blocks of CBMs and considered powerful and useful tools for business model innovation (BMI). The case survey methodology analyzed 34 companies and two semi-structured interviews were conducted. Hierarchical clustering analysis and chi-square tests were used for data analysis. The result of this thesis is a more comprehensive list of CBMPs (13 in total). Recommendations are given to academia, policy makers and companies. For CE to happen, many changes are needed and currently the principles of CE are not widely adopted. With the arrival of CE companies and their business models need to change. CBMPs can help the BMI process by giving the process the right direction.