scholarly journals Eco-Holonic 4.0 Circular Business Model to Conceptualize Sustainable Value Chain towards Digital Transition

2020 ◽  
Vol 12 (5) ◽  
pp. 1889
Author(s):  
María Jesús Ávila-Gutiérrez ◽  
Alejandro Martín-Gómez ◽  
Francisco Aguayo-González ◽  
Juan Ramón Lama-Ruiz
Keyword(s):  
Conceptual Model ◽  
Activity Theory ◽  
Business Model ◽  
Value Chain ◽  
Circular Economy ◽  
Business Models ◽  
Social Systems ◽  
Manufacturing Companies ◽  
Industrial Sectors ◽  
Sustainable Value

The purpose of this paper is to conceptualize a circular business model based on an Eco-Holonic Architecture, through the integration of circular economy and holonic principles. A conceptual model is developed to manage the complexity of integrating circular economy principles, digital transformation, and tools and frameworks for sustainability into business models. The proposed architecture is multilevel and multiscale in order to achieve the instantiation of the sustainable value chain in any territory. The architecture promotes the incorporation of circular economy and holonic principles into new circular business models. This integrated perspective of business model can support the design and upgrade of the manufacturing companies in their respective industrial sectors. The conceptual model proposed is based on activity theory that considers the interactions between technical and social systems and allows the mitigation of the metabolic rift that exists between natural and social metabolism. This study contributes to the existing literature on circular economy, circular business models and activity theory by considering holonic paradigm concerns, which have not been explored yet. This research also offers a unique holonic architecture of circular business model by considering different levels, relationships, dynamism and contextualization (territory) aspects.

The anatomy of circular economy transition in the fashion industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sita Mishra ◽  
Sheetal Jain ◽  
Gunjan Malhotra
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Circular Economy ◽  
Business Models ◽  
Closed Loop ◽  
Phase 1 ◽  
Extensive Literature ◽  
Fashion Industry ◽  
Model Framework ◽  
Content Type

Purpose Unsustainable fashion consumption and wasteful practices have recently garnered attention in practice and academia; however, research in this field is limited. This study is based upon an extensive review of the literature and aims to fill this gap by providing an in-depth understanding of various drivers and actors operating in the closed-loop fashion value chain. The purpose of this study is to develop a framework of transformation from the linear economy (LE) to the circular economy (CE) for the fashion industry based on “transition theory.” Design/methodology/approach This study is conducted in two phases. In Phase 1, a bibliographic compilation on the given subject is done. In Phase 2, data about the case company is collected through trade media and semi-structured interviews with the founder and the designers. Findings The study found that key drivers for the closed-loop fashion value chain are collaboration with partners, innovation, waste management system, customer connect and changing utilization patterns. Based on the extensive literature review and analysis of the case study, it can be concluded that to incorporate CE principles, namely, reduce, repair, reuse and recycle into current business models, redefining existing value propositions and transforming various business model elements is essential. Practical implications A three-level (discrete level, aggregator level and the peripheral level) framework is developed that can help the fashion industry in transition from LE to CE. This study will help fashion houses to understand how they can work in tandem with various stakeholders to develop sustainable business models. Originality/value This paper contributes to research by advancing the understanding of how to further develop and redesign an innovative business model framework for the circular fashion value chain. A three-level framework is developed that can be used for transition from LE to CE, especially in the fashion industry. This study is one of the first research that has tried to analyze the Indian case company for CE practices in fashion.

scholarly journals Identifying the Equilibrium Point between Sustainability Goals and Circular Economy Practices in an Industry 4.0 Manufacturing Context Using Eco-Design

2019 ◽  
Vol 8 (8) ◽  
pp. 241 ◽  
Author(s):  
Garcia-Muiña ◽  
González-Sánchez ◽  
Ferrari ◽  
Volpi ◽  
Pini ◽  
...  
Keyword(s):  
Equilibrium Point ◽  
Business Model ◽  
Circular Economy ◽  
Industry 4.0 ◽  
Business Models ◽  
Methodological Approach ◽  
Manufacturing Companies ◽  
Manufacturing Environment ◽  
Enabling Factors ◽  
New Business

For manufacturing companies, the transition to circular business models (CBMs) can be hampered both by the lack of relevant data and by operational tools. Eco-design, associated with Industry 4.0 IoT (Internet of Things) technologies, can be an effective methodological approach in developing products that are consistent with the principles of the circular economy. The reason is that, in the design phase, decisions are made that can significantly influence the degree of sustainability of products during their lifecycle. Therefore, in the manufacturing environment, eco-design represents an innovative approach to include sustainability among the traditional industrial variables such as functionality, aesthetics, quality, and profit. This study aimed to test eco-design as a tool to define the equilibrium point between sustainability and circular economy in the manufacturing environment of ceramic tile production, and to demonstrate how new business opportunities can be created through evolution from a linear to a circular business model, thanks to IoT and Industry 4.0 technologies used as enabling factors. The main result of this paper was the empirical validation in a manufacturing environment of sustainability paradigms through eco-design tools and digital technologies, proposing the circular business model as an operational tool to promote the competitiveness of enterprises.

scholarly journals The Role of Social Enterprise Hybrid Business Models in Inclusive Value Chain Development

2021 ◽  
Vol 13 (2) ◽  
pp. 499
Author(s):  
Bob Doherty ◽  
Pichawadee Kittipanya-Ngam
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Social Impact ◽  
Business Models ◽  
Rural Poverty ◽  
Sustainable Business ◽  
Middle Income ◽  
Low Middle Income Countries ◽  
Development Literature ◽  
Hybrid Organisations

This study contributes to the growing interest in hybrid organisations, sustainable business models and inclusive value chain development (IVCD). Recent work has identified that of some 570 million farmers in the world, more than 475 million farmers are smallholders in low-middle-income countries experiencing increasing food insecurity and rural poverty. Research argues that there is a lack of research that provides work on appropriate solutions for smallholders. This paper answers this call by a qualitative study of ten case studies, which draws on hybrid organising, sustainable business model and IVCD research to identify the novel business model characteristics that hybrid organisations use to create and manage more inclusive value chains for smallholders. These hybrid organisations are designed to create a value proposition that delivers sustainability upgrading for smallholders via both product, process and governance upgrades, empowers smallholders to achieve development goals and creates multiple value for social impact. We therefore identify the important characteristics of the hybrid business model to provide appropriate solutions for smallholders and overcome the challenges identified in the inclusive value chain development literature.

scholarly journals DigiPrime: Digital Platform for Circular Economy in Cross-Sectorial Sustainable Value Networks

Proceedings ◽  
2020 ◽  
Vol 65 (1) ◽  
pp. 1
Author(s):  
Elena Mossali ◽  
Marco Diani ◽  
Marcello Colledani
Keyword(s):  
Circular Economy ◽  
Business Models ◽  
Value Added ◽  
Environmental Crisis ◽  
Value Chains ◽  
Economic Opportunity ◽  
Construction Sector ◽  
Digital Platform ◽  
Sustainable Value ◽  
Value Added Products

Circular Economy is the solution for the current environmental crisis, representing a huge economic opportunity to build new sustainable businesses. However, many barriers need to be faced for its implementation at industrial scale—firstly, the lack of data sharing between the different stakeholders of product value-chains. The DigiPrime project is an EU-funded Innovation Action aimed at developing and demonstrating a digital platform with services able to unlock innovative cross-sectorial business models for the remanufacturing and recycling of target value-added products. In this paper, the concept behind the DigiPrime project is reported, with a particular focus on the construction sector.

“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.

The future of the Internet of Things: toward heterarchical ecosystems and service business models

2018 ◽  
Vol 33 (6) ◽  
pp. 749-767 ◽  
Author(s):  
Seppo Leminen ◽  
Mervi Rajahonka ◽  
Mika Westerlund ◽  
Robert Wendelin
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Value Chain ◽  
Large Scale ◽  
Business Models ◽  
The Internet ◽  
Content Type ◽  
Industry Collaboration ◽  
New Business ◽  
The Internet Of Things

Purpose This study aims to understand their emergence and types of business models in the Internet of Things (IoT) ecosystems. Design/methodology/approach The paper builds upon a systematic literature review of IoT ecosystems and business models to construct a conceptual framework on IoT business models, and uses qualitative research methods to analyze seven industry cases. Findings The study identifies four types of IoT business models: value chain efficiency, industry collaboration, horizontal market and platform. Moreover, it discusses three evolutionary paths of new business model emergence: opening up the ecosystem for industry collaboration, replicating the solution in multiple services and return to closed ecosystem as technology matures. Research limitations/implications Identifying business models in rapidly evolving fields such as the IoT based on a small number of case studies may result in biased findings compared to large-scale surveys and globally distributed samples. However, it provides more thorough interpretations. Practical implications The study provides a framework for analyzing the types and emergence of IoT business models, and forwards the concept of “value design” as an ecosystem business model. Originality/value This paper identifies four archetypical IoT business models based on a novel framework that is independent of any specific industry, and argues that IoT business models follow an evolutionary path from closed to open, and reversely to closed ecosystems, and the value created in the networks of organizations and things will be shareable value rather than exchange value.

The Ontology of the OSS Business Model

2013 ◽  
pp. 40-58
Author(s):  
Spyridoula Lakka ◽  
Teta Stamati ◽  
Christos Michalakelis ◽  
Dracoulis Martakos
Keyword(s):  
Conceptual Framework ◽  
Business Model ◽  
Value Chain ◽  
Exploratory Study ◽  
Business Models ◽  
Methodological Approach ◽  
Theory Building ◽  
Revenue Model ◽  
Software Business

This study focuses on theory building providing a holistic conceptual framework that consists of an ontology based OSS business model and an OSS business model taxonomy. The study extends existing theory in OSS business models and corresponding taxonomies, based on the structured-case methodological approach. An exploratory study is conducted in two research cycles, for the identification, validation, and evaluation of the critical constructs of an OSS business model. Results reveal that OSS business models differ from traditional software business models, having specific features that affect the software value chain, the infrastructure, and the revenue model of an OSS oriented firm.

Cultural Tourism O2O Business Model Innovation

2020 ◽  
pp. 406-423
Author(s):  
Chao Lu ◽  
Sijing Liu
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Business Models ◽  
Business Model Innovation ◽  
Utilization Efficiency ◽  
The Internet ◽  
Enterprise Value ◽  
Model Research ◽  
The Social ◽  
Tourism Enterprises

It is absolutely not an accidental phenomenon that the development of Internet overlaps with boom of business model research. The emergence of the Internet has greatly promoted the development and study of business models. This paper focuses on exploration of O2O business model innovation by analyzing the main types, evolution and driving factors of Chinese Internet business model, taking Ctrip as the example. From the social prospective, O2O business model improves value and feeling of the customer experience as well as the operational efficiency of the enterprise value chain and utilization efficiency of social resources. This paper has also put forward what Ctrip can enlighten the development of tourism enterprises.

scholarly journals Applying a Sustainable Business Model Lens to Mutual Value Creation With Base of the Pyramid Suppliers

2020 ◽  
pp. 000765032097345
Author(s):  
Krzysztof Dembek ◽  
Jodi York
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Business Models ◽  
Single Case ◽  
Base Of The Pyramid ◽  
Sustainable Business ◽  
Value Capture ◽  
Promising Alternative ◽  
Sustainable Business Models ◽  
Multi Stakeholder

Base of the pyramid (BoP) ventures seek to create “mutual value” for themselves and poor communities, but often use business models unadapted for the BoP context, and have been less successful than hoped. Sustainable business models’ (SBMs) multi-stakeholder lens offers a promising alternative path to mutual value, but BoP-based SBM studies are scarce. This single case study explores whether and how SBM characteristics manifest in the business model and value outcomes of Habi, a Manila footwear company successfully creating mutual value with BoP suppliers. We find SBM characteristics underpin Habi’s dual-structure business model (value chain/shop) and success in four ways: viewing profits as a tool for community development resulted in designing both product and business model around community strengths; understanding communities as systems helped Habi address the complexities of poverty; balancing short-term business needs with a long-term, slow-growth approach led to their choice of investors; and implementing community value capture mechanisms ensured enduring community benefit.

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