A Review and Typology of Circular Economy Business Model Patterns

26 Pages Posted: 1 Mar 2019

See all articles by Florian Lüdeke-Freund

Florian Lüdeke-Freund

University of Hamburg, Chair of Capital Markets and Management; Leuphana University, Centre for Sustainability Management (CSM)

Stefan Gold

University of Neuchatel

Nancy M. P. Bocken

Lund University

Date Written: February 2019

Abstract

The circular economy (CE) requires companies to rethink their supply chains and business models. Several frameworks found in the academic and practitioner literature propose circular economy business models (CEBMs) to redefine how companies create value while adhering to CE principles. A review of these frameworks shows that some models are frequently discussed, some are framework specific, and some use a different wording to refer to similar CEBMs, pointing to the need to consolidate the current state of the art. We conduct a morphological analysis of 26 current CEBMs from the literature, which includes defining their major business model dimensions and identifying the specific characteristics of these dimensions. Based on this analysis, we identify a broad range of business model design options and propose six major CEBM patterns with the potential to support the closing of resource flows: repair and maintenance; reuse and redistribution; refurbishment and remanufacturing; recycling; cascading and repurposing; and organic feedstock business model patterns. We also discuss different design strategies to support the development of these CEBMs.

Keywords: business model, circular economy, review, supply chain, typology, value creation

Suggested Citation

Lüdeke-Freund, Florian and Gold, Stefan and Bocken, Nancy M. P., A Review and Typology of Circular Economy Business Model Patterns (February 2019). Journal of Industrial Ecology, Vol. 23, Issue 1, pp. 36-61, 2019. Available at SSRN: https://ssrn.com/abstract=3344684 or http://dx.doi.org/10.1111/jiec.12763

Florian Lüdeke-Freund (Contact Author)

University of Hamburg, Chair of Capital Markets and Management ( email )

Faculty of Business, Economics & Social Sciences
Von-Melle-Park 9
Hamburg, 20146
Germany

HOME PAGE: http://www.SustainableBusinessModel.org

Leuphana University, Centre for Sustainability Management (CSM) ( email )

Faculty of Sustainability
Scharnhorststr. 1
Lüneburg, 21335
Germany

Stefan Gold

University of Neuchatel ( email )

1, A.-L. Breguet
Neuchatel, CH-2000
Switzerland

Nancy M. P. Bocken

Lund University

Box 117
Lund, S221 00
Sweden

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