scholarly journals Customer Experience in Circular Economy: Experiential Dimensions among Consumers of Reused and Recycled Clothes

2022 ◽  
Vol 14 (1) ◽  
pp. 509
Author(s):  
An Hai Ta ◽  
Leena Aarikka-Stenroos ◽  
Lauri Litovuo
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Customer Experience ◽  
Clothing Industry ◽  
Structured Interviews ◽  
Five Dimensions ◽  
Qualitative Interview Study ◽  
Customer Perspective ◽  
Customer Values

The textile and clothing industry is undergoing a sustainability transition, pushing related businesses to adapt to circular economy (CE) models, such as recycling and reuse. This shift has been extensively studied from industry and business model perspectives, but we lack an understanding of the customer perspective, i.e., how circulated products, such as reused and recycled clothes are experienced among consumers. This understanding is crucial, as customer experience plays a significant role in the adoption of CE products. Therefore, we conducted a qualitative interview study to explore how consumer-customers experience recycled textiles and reused clothes. We used an established experience dimension model and mapped how the five dimensions of customer experience—sensory, affective, behavioral, cognitive, and social—present themselves in the sustainable clothing industry. The data comprised 16 qualitative semi-structured interviews analyzed with a coding framework built on the basis of customer experiences, customer values, and the CE business model literature. The results revealed that diverse sensory (e.g., scent), affective (e.g., pride and shame), behavioral (e.g., developing new decision-making rules), cognitive (e.g., learning and unlearning), and social (e.g., getting feedback from others and manifesting own values) aspects shape how consumers experience reused and recycled clothes. We also compared and analyzed the results of the reuse and redistribute model and the recycle model. Our study contributes to the literature of CE business models and customer experience by providing a structured map of diverse experiential triggers and outcomes from the five experiential dimensions, which together reveal how consumers experience circulated products of the clothing industry. These findings enhance our understanding of customers’ motivation to use recycled and reused products and adoption of CE products.

“Enabling circular business models in the fashion industry: the role of digital innovation”

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Phuc Hong Huynh
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Digital Technologies ◽  
Theory And Practice ◽  
Chain Model ◽  
Fashion Industry ◽  
Digital Innovation ◽  
Content Type ◽  
Radical Innovations

PurposeDigital innovation and circular business model innovation are two critical enablers of a circular economy. A wide variety of digital technologies such as blockchain, 3D printing, cyber-physical systems, or big data also diverges the applications of digital technologies in circular business models. Given heterogeneous attributes of circular business models and digital technologies, the selections of digital technologies and circular business models might be highly distinctive within and between sectorial contexts. This paper examines digital circular business models in the context of the fashion industry and its multiple actors. This industry as the world’s second polluting industry requires an urgent circular economy (CE) transition with less resource consumption, lower waste emissions and a more stable economy.Design/methodology/approachAn inductive, exploratory multiple-case study method is employed to investigate the ten cases of different sized fashion companies (i.e. large, small medium-sized firm (SME) and startup firms). The comparison across cases is conducted to understand fashion firms' distinct behaviours in adopting various digital circular economy strategies.FindingsThe paper presents three archetypes of digital-based circular business models in the fashion industry: the blockchain-based supply chain model, the service-based model and the pull demand-driven model. Besides incremental innovations, the radical business model and digital innovations as presented in the pull demand-driven model may be crucial to the fashion circular economy transition. The pull demand–driven model may shift the economy from scales to scopes, change the whole process of how the fashion items are forecasted, produced, and used, and reform consumer behaviours. The paths of adopting digital fashion circular business models are also different among large, SMEs and startup fashion firms.Practical implicationsThe study provides business managers with empirical insights on how circular business models (CBMs) should be chosen according to intrinsic business capacities, technological competences and CE strategies. The emerging trends of new fashion markets (e.g. rental, subscription) and consumers' sustainable awareness should be not be neglected. Moreover, besides adopting recycling and reuse strategies, large fashion incumbents consider collaborating with other technology suppliers and startup companies to incubate more radical innovations.Social implicationsAppropriate policies and regulations should be enacted to enable the digital CE transition. Market patterns and consumer acceptances are considered highly challenging to these digital fashion models. A balanced policy on both the demand and supply sides are suggested. The one-side policy may fail CBMs that entail an upside-down collaboration of both producers and consumers. Moreover, it is perhaps time to rethink how to reduce unnecessary new demand rather than repeatedly producing and recycling.Originality/valueThe pace of CE research is lagging far behind the accelerating environmental contamination by the fashion industry. The study aims to narrow the gap between theory and practice to harmonise fashion firms' orchestration and accelerate the transition of the fashion industry towards the CE. This study examines diverse types of digital technologies in different circular business models in a homogeneous context of the fashion industry with heterogeneous firm types.

scholarly journals Equipment Maintenance Business Model Innovation for Sustainable Competitive Advantage in the Digitalization Context: Connotation, Types, and Measuring

2018 ◽  
Vol 10 (11) ◽  
pp. 3970 ◽  
Author(s):  
Juhong Chen ◽  
Ruijun Zhang ◽  
Di Wu
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Business Models ◽  
Economic Benefits ◽  
Business Model Innovation ◽  
Equipment Maintenance ◽  
Sustainable Competitive Advantage ◽  
Structured Interviews ◽  
Profit Center ◽  
Manufacturing Enterprises

The equipment maintenance services have become a new profit center and an important way to gain sustainable competitive advantage for manufacturing enterprises. The business model is an important tool for manufacturing enterprises to derive economic benefits from sustainable competitive advantage in the context of digitalization technologies, such as IoT, big data, and cloud computing. At present, the concept of equipment maintenance business model innovation is still vague, and it is rare to report on the innovation behaviors and types of equipment maintenance business models adopted by manufacturing enterprises. Based on literature analysis of equipment maintenance services and business model innovation, following business model gestalt theory, the concept of equipment maintenance business model innovation is analyzed at the business-level, the types are divided into novel and efficient following value sources—“innovation and efficiency”. The initial scale is developed through literature investigation, semi-structured interviews and expert reviews, and tested by exploratory and confirmatory factor analysis by using the data of two independent large-sample questionnaires. The results indicate that the behavior and types of equipment maintenance business model innovation can be described by two types and 19 items.

Digital Retail and How Customer-Centric Technology is Reshaping the Industry

2018 ◽  
pp. 1560-1580 ◽  
Author(s):  
Pablo Penas Franco
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Business Models ◽  
Customer Experience ◽  
Retail Industry ◽  
Brick And Mortar ◽  
Digital Disruption ◽  
Cloud Technologies ◽  
The Impact

This chapter explains the digital disruption that has occurred and is still happening in the retail industry. It explains the relative positions of the world's leading retailers Wal-Mart, Amazon and Alibaba and the business models of the two top online competitors. It focuses on the impact of SMAC (Social, Mobile, Analytics and Cloud) technologies and new retail trends enabled or boosted by technology such as omni-channel, customer experience, internet of things (IoT) and analytics, fulfillment and delivery. It deepens into IT and business model customer-centric design, the role of the customer and the store in the new digital retail and finishes with an assessment of ROI in retail digitization. The chapter concludes the fundamental IT-enabled changes of digital disruption are critical for all players, traditional brick-and-mortar retailers, pure online players and those with both an online and an offline presence.

Cognitive biases of consumers as barriers in transition towards circular economy

2019 ◽  
Vol 57 (4) ◽  
pp. 921-936 ◽  
Author(s):  
Poonam Singh ◽  
Elisa Giacosa
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Cognitive Biases ◽  
Content Type ◽  
Effective Interventions ◽  
Free Transition ◽  
Conceptual Paper ◽  
The Individual ◽  
Practical Implications

Purpose The purpose of this paper is to identify the cognitive biases of consumer and explain how they are creating barriers in transition towards circular economy (CE). Design/methodology/approach This is a conceptual paper which adopts a consumer-centric conceptualization of CE by focussing on cognitive biases as an underlying and unifying mechanism which is creating barriers in the adoption of CE. This conceptualization explains consumers’ non-adoption of circular business model, highlight synergies across disconnected theories and streams of research originating in different disciplines and at the individual, societal and cultural levels of analysis. Findings The findings of this paper suggest that circular business models are not fulfilling the psychological, social and cultural needs of the consumers and that in turn lead to barriers in diffusion of the CE. Consumers have a negative connotation with the different circular business model due to their cognitive biases. Practical implications The paper details about key implications to design effective interventions to modify consumer behaviour in the desired direction for hassle-free transition to CE from the linear economy. Originality/value This paper offers a shift in CE research from a deterministic approach to conceptualising consumers to a positivist approach to conceptualising consumers.

Exploring the dynamism of complementarities in executives’ business modelling knowledge structures

2014 ◽  
Vol 7 (4) ◽  
pp. 398-421 ◽  
Author(s):  
Arash Najmaei ◽  
Jo Rhodes ◽  
Peter Lok
Keyword(s):  
Business Model ◽  
Business Models ◽  
Knowledge Structure ◽  
Technological Knowledge ◽  
Manufacturing Firms ◽  
Structured Interviews ◽  
Content Type ◽  
Dynamic Markets ◽  
Business Modelling ◽  
Interactive Nature

Purpose – The purpose of this paper is to explore and explain how market and technological knowledge gained by executives interact in a complementary fashion to form the knowledge structure of their business model which in turn enable them to make sense of underlying complexities surrounding management of strategic courses of action. Design/methodology/approach – Unitizing, categorizing, and classifying (UCC) in conjunction with pattern-matching (power and proof quotes) as qualitative methods were used to analyse a series of semi-structured interviews with eight executives from five small manufacturing firms in Australia. Findings – It was found that executives’ business modelling knowledge structure defined as the knowledge base that underpins their business models is developed from four interactions that exist between their market and technological knowledge. Particularly, executives can learn about technological aspects of their business model from market knowledge they acquire and also learn about marketing issues of their business model from technological knowledge they acquire. This interactive nature offers novel insights into versatility and fungibility of executives’ knowledge as a strategic resource that defines how business models evolve and shows how executives use knowledge as a non-rivalrous resource in different ways for developing different business models. Research limitations/implications – This study is limited in scope to: first, the context of executive of Australian small manufacturing firms and second, limited sources of data. Practical implications – This study offers important implications for business modelling and strategic formulation of practicing managers. It particularly contributes to a fuller understanding of how executives’ learning contributes to the cognitive formation of business models. It also helps executives gain new insights into the importance of various types of knowledge and the complementary nature of their interactions in the development of novel mental models as a key managerial competency in today’s dynamic markets. Originality/value – The conceptual framework developed and findings reported in this study have not been previously studied and offer novel insights into the literature on knowledge-based management, competitiveness, and business modelling.

scholarly journals What Is the Customer Value of the Circular Economy? Cross-Industry Exploration of Diverse Values Perceived by Consumers and Business Customers

2021 ◽  
Vol 13 (24) ◽  
pp. 13764
Author(s):  
Leena Aarikka-Stenroos ◽  
Martina Don Welathanthri ◽  
Valtteri Ranta
Keyword(s):  
Circular Economy ◽  
Customer Value ◽  
Business Models ◽  
Theoretical Understanding ◽  
Case Investigation ◽  
Functional Value ◽  
Conceptual Maps ◽  
Customer Perspective ◽  
Multiple Case ◽  
Business Customers

A growing number of companies provide CE products, technologies, services, and solutions, and similarly, an increasing number of researchers have analyzed sustainable and CE business models providing knowledge about CE technology businesses. However, this research has focused almost solely on the providers’ perspective on CE business and offerings, remaining silent on the customer perspective. Therefore, this study contributes by focusing on the customer value of CE innovations and solutions, conducting an explorative qualitative multiple-case investigation among customers of diverse CE businesses, and mapping diverse customer value dimensions, including economic, functional, emotional, and symbolic, and comparing them as perceived by consumer and business customers. The findings show that the functional value of CE offerings dominates. We develop conceptual maps for CE customer value for a theoretical understanding of the CE from the customer perspective and provide insights for managers to assert the value of their CE solutions.

scholarly journals Partnership-based business modelling as an opportunity in the context of globalisation and as a challenge for business models

2021 ◽  
Vol 92 ◽  
pp. 02065
Author(s):  
Andris Vanags ◽  
Zane Drinke
Keyword(s):  
Business Model ◽  
Business Models ◽  
Value Added ◽  
Management Skills ◽  
Structured Interviews ◽  
Business Modelling ◽  
Content Analysis Method ◽  
Working Together ◽  
Open Coding ◽  
A Company

Research background: Management of the complex reality - transformation to the world of the future- is often associated with discovering new directions in a company’s activities. One of these directions is the formation of beneficial partnerships aimed at working together to achieve certain goals, which in turn relate to necessary changes within the company. Change has become inevitable in every enterprise and phased management of change is becoming a daily component of administration and a part of company’s development: the speed, scale and complexity of change is increasing nowadays, and it is impossible to stop this flow. In this context it is very important to determine to what extent and in what aspects a company needs change. Purpose of the article: The aim of the research is to investigate what factors could influence and what aspects could be affected by reinventing the existing business model and establishing a new partnership-based business model within a company and what should be done to implement this change successfully. Research methods: literature analysis, semi-structured interviews and a survey. The research data was processed by continuous comparative analysis, using open coding, level 2 coding, content analysis method. Findings & Value added: the results drawn from this study could provide academics and practitioners with a better understanding of communication and change-readiness capabilities. This knowledge can then be applied to their strategies and management skills for the purpose of achieving partnership-based business model with success.

scholarly journals Business model as an innovation

2021 ◽  
pp. 11-26
Author(s):  
Robert Romanowski ◽  
Magdalena Wieja
Keyword(s):  
Business Model ◽  
Business Models ◽  
Innovation Process ◽  
Customer Experience ◽  
Product Performance ◽  
Customer Engagement ◽  
Market Environment ◽  
Economic Innovation ◽  
The Way

Business model is the way in which an organization develops relationships with their market environment and converts products into cashflow. The chapter focuses on business model as a type of economic innovation. This chapter provides a case study on CD Projekt Red company, the publisher of the Witcher games series. The case of the game covers three types of innovations, i.e., business model, product performance and customer engagement, and is an example of multidimensional innovation process. The case is related to both innovation types: business models and customer experience ones. The aim of this chapter is to diagnose business model innovations on the basis of The Witcher 3: Wild Hunt game created by CD Projekt Red.

scholarly journals Knowledge Marketplaces: An Analysis of the Influence of Business Models on Instructors’ Motivations and Strategies

2021 ◽  
Vol 22 (3) ◽  
pp. 142-158
Author(s):  
Matthieu Tenzing Cisel ◽  
David Pontalier
Keyword(s):  
Higher Education ◽  
Quantitative Analysis ◽  
Business Model ◽  
Mixed Method ◽  
Business Models ◽  
Significant Proportion ◽  
Institutions Of Higher Education ◽  
Structured Interviews ◽  
Mixed Method Approach ◽  
Method Approach

Unlike MOOC platforms such as Coursera or edX, which typically partner with institutions of higher education, online knowledge marketplaces allow anyone to broadcast courses and charge for them. In this article, we investigate, through a mixed-method approach, the motivations and strategies of the instructors of Udemy and Skillshare. Semi-structured interviews and a quantitative analysis of the characteristics of Skillshare’s courses, obtained using a Web scraper, suggest that while a significant proportion of the marketplace’s instructors are outreach driven, the majority are income driven. They develop strategies to maximize their revenues, notably by adapting the characteristics of their courses, such as the number of videos, to the business model of the platform. Courses are shorter on Skillshare than on Udemy, where instructors’ incomes are proportional to the number of registrations. We hypothesize that the latter platform’s business model incentivizes instructors to create longer courses in order to attract wider audiences.  

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