Sustainability and Justness for Transforming the Water Utility Companies' Business Models in the Circular Economy

2020 ◽  
pp. 195-215
Author(s):  
Ninel Ivanova Nesheva-Kiosseva
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Natural Capital ◽  
Economic Value ◽  
Human Right ◽  
Water Utility ◽  
Fair Treatment ◽  
Utility Companies ◽  
Water And Wastewater

The purpose of this chapter is to explore some of the problems of the transformation necessary to the business model of water and wastewater utility companies into a circular economy. This goal is accomplished by extending the understanding of the business model beyond the conventional understanding “within the framework of the corporation.” This expansion of the scope of the water and wastewater utility companies' business model is justified by the fact that water, the source of their business, is a vital natural capital, and along with its economic value, water is a recognized human right. The study elaborates on the part of the business model related to the issues of fair treatment of society in its relations with business. The authors also explore the issue of value creation for stakeholders not only within a business but also through cooperation between water businesses and stakeholders.

“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.

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.

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.

Stakeholders' involvement in establishing sustainable business models

2020 ◽  
Vol 122 (5) ◽  
pp. 1671-1691 ◽  
Author(s):  
Mariantonietta Fiore ◽  
Antonino Galati ◽  
Jarosław Gołębiewski ◽  
Nina Drejerska
Keyword(s):  
Business Model ◽  
Business Models ◽  
Dominant Role ◽  
Economic Value ◽  
Theoretical Assumption ◽  
Sustainable Business ◽  
Content Type ◽  
Customer Expectations ◽  
Social Environmental ◽  
Dairy Cooperatives

PurposeCooperatives play a dominant role in the European dairy sector. The aim of the study is to define a sustainable business model of dairy cooperatives and explore how stakeholders can contribute to innovation processes generated in this ecosystem.Design/methodology/approachStarting from theoretical assumption and investigation of three major cooperatives located in an ecological agricultural Poland region, known also as “Green Lungs of Poland,” the authors propose a sustainable business model where the role stakeholders in the value co-creation is emphasized.FindingsThe findings of this paper show how the involvement of various stakeholders by the cooperatives contributes to the development of innovations that meet customer expectations, thereby concurring to the creation of social, environmental and economic value.Originality/valueThis paper formulates a business model integrating theoretical assumptions from the literature review with empirical evidence by exploring the roles of stakeholders that contribute and incorporate innovation, responsibility and sustainability into the core of activities of cooperatives.

scholarly journals From singular to plural: exploring organisational complexities and circular business model design

2019 ◽  
Vol 23 (3) ◽  
pp. 308-326 ◽  
Author(s):  
Esben Rahbek Gjerdrum Pedersen ◽  
Rebecca Earley ◽  
Kirsti Reitan Andersen
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Illustrative Case ◽  
Fashion Industry ◽  
Value Capture ◽  
Content Type ◽  
Fashion Brand ◽  
New Business ◽  
Multiple Challenges

Purpose The purpose of this paper is to discuss how organisational complexities influence the design of circular business models, which have recently been introduced as a new panacea for aligning the interests of business with the needs of the environment. Design/methodology/approach The Service Shirt, a new garment concept, is used as an illustrative case example for demonstrating some of the organisational complexities of making circular business models operable. The shirt was developed through a series of design workshops for the fashion brand Fashion Alpha. Findings The analysis highlights multiple challenges emerging when a fashion product with a significantly extended lifecycle passes through different users, organisations and business models. It is concluded that it is difficult to talk about a circular business model (singular) as circular economy solutions depend on the contributions of multiple stakeholders with business models. Practical implications The findings illustrate how fashion companies interested in the circular economy fundamentally have to rethink conventional approaches to value, organisational boundaries and temporality. Originality/value Drawing on a case example from the fashion industry, the paper demonstrates the organisational complexities linked to the design of new business models based on circular economy thinking, as these require the coordination of actions between autonomous actors driven by different logics regarding value creation, value delivery and value capture.

Circular economy business model for smart tourism: the case of Ecobnb

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pasquale del Vecchio ◽  
Caterina Malandugno ◽  
Giuseppina Passiante ◽  
Georgia Sakka
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Circular Economy ◽  
Business Models ◽  
Business Model Innovation ◽  
Social Implications ◽  
Content Type ◽  
Tourism Management ◽  
Practical Implications ◽  
Smart Tourism

PurposeThe paper aims to shed new light on the process of value creation and business model innovation resulting from circular economy in the context of smart tourism.Design/methodology/approachThe study embraces a qualitative and exploratory approach related to a single case study. Data have been collected through the integration of web-based desk analysis, interviews and social big data analytics.FindingsFindings are related to Ecobnb, a network-based tourism company, coherent with the principles of value creation and business model innovation in the context of circular economy and smart tourism.Research limitations/implicationsThe study allows understanding of how smart tourism and circular economy can represent two important lenses for managing complexity and driving tourism companies and destinations toward sustainable and smart value creation processes.Practical implicationsPractical implications arise for managers and destination makers in terms of innovation of the tourism management and transition of the business models toward a circular configuration.Social implicationsThe study offers social implications by contributing to the dissemination of a culture of sustainability in tourism management and active involvement of local stakeholders in the growth of a tourism destination.Originality/valueThe study provides an original contribution to the debate on tourism by highlighting the obsolescence of traditional models of management in tourism companies and destinations, seen during the recent pandemic emergence, could be solved through the virtuous integration of digital technologies and sustainable approaches.

scholarly journals B2B Marketing Crafts Intelligence Commerce: How a Chatbot Is Designed for the Taiwan Agriculture Service

2020 ◽  
Vol 10 (2) ◽  
pp. 114-124
Author(s):  
Abbott Po Shun Chen ◽  
Keyword(s):  
Circular Economy ◽  
Rural Areas ◽  
Success Factors ◽  
Business Models ◽  
Economic Value ◽  
Added Value ◽  
Experience Economy ◽  
Resource Base ◽  
B2b Marketing ◽  
Lack Of Information

Intelligence commerce is one of the key success factors for Taiwan's development of business models. In particular, the agricultural service of rural areas is more like a social resource investment in the process of the transformation of the primary industry. However, agricultural firms still have to think about how to optimize services and create jobs to form an important resource base and competitive advantage. The place-making is the value of the circular economy, experience economy and digital economy provided by the intelligence commerce. The circular economy is the economic value of developing land recycling production. In remote farms, farmers' production processes and achievements can be assisted by customer communication and agile production visualization by the Chatbot of intelligence commerce, at which point the farm can be upgraded and added value. When consumers have prior knowledge and recognition of the farm, the farmers have a good stereotype, can provide services, and increase revenues for the experience activities of intelligence commerce. In view of the lack of information capacity of farmers, this research assists farmers in using a Chat to promote business activities. Overall, this research and the cooperative firm jointly develop intelligence commerce and establish an optimized business model for the practical application of a remote farmer's farm. In addition to the value of academic theory application, this achievement can also provide a good innovative operational value for industrial practice.

scholarly journals Business Modelling

2021 ◽  
pp. 19-33
Author(s):  
Jan Jonker ◽  
Niels Faber
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Circular Economy ◽  
Business Models ◽  
Building Blocks ◽  
Specific Context ◽  
Business Modelling ◽  
Three Stages ◽  
Do So ◽  
Available Resources

AbstractA transition from a linear economy to a more sustainable and circular economy requires different business models. In this chapter, we provide you with an introduction to the nature and logic of business models. In essence, a business model is a description of how value creation between parties or partners is organized, at a particular moment, in a specific context, and given available resources. Conventional business modelling approaches have several weaknesses—the main point of criticism being their focus on creating financial value. With the Business Model Template (BMT), we try to resolve most of these criticisms. To do so we introduce three archetypal business models: the platform, community, and circular economy business models. This chapter provides an overview on how, over three stages and ten building blocks that together make up the Business Model Template, these archetypal business models will be used.

scholarly journals Management Control and Business Model Innovation in the Context of a Circular Economy in the Dutch Construction Industry

2021 ◽  
Vol 14 (1) ◽  
pp. 366
Author(s):  
Henk Ruiter ◽  
Frank De Feijter ◽  
Koos Wagensveld
Keyword(s):  
Control Systems ◽  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Business Model Innovation ◽  
Management Control ◽  
Research Approach ◽  
Interactive Control ◽  
Construction Companies ◽  
Governmental Organizations

This study explores how different forms of management control support and enable business model innovation in the context of the principles of the circular economy. Following a qualitative research approach, empirical data is collected from construction companies and governmental organizations in the Netherlands. Building on Simons’ four levers of control. This paper illustrates how to balance the intended and emergent strategies via the organization’s management control system. According to Simons, the four levers encompass the beliefs systems, the interactive control systems, the diagnostic control systems, and the boundary controls. The empirical findings uncover the beliefs systems and the interactive control systems to be the most relevant levers that enable and drive business model innovation striving for the effective use of materials. Rather than measuring the output with predefined performance indicators, business model innovation in this context is better served by diagnostic controls which evaluate how innovative business models contribute to the organization’s mission.

scholarly journals TOWARDS CRYSTALLIZING CIRCULAR BUSINESS MODELS: A CRITICAL ANALYSIS OF LITERATURE

2020 ◽  
Vol 15 (6) ◽  
pp. 175-194
Author(s):  
AGNIESZKA KARMAN ◽  
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Critical Analysis ◽  
Business Models ◽  
Value Chains ◽  
Future Research ◽  
Value Proposition ◽  
Related Research ◽  
Research Questions ◽  
The Creation

Circular Economy (CE) can be promoted and supported by the creation of new and innovative business models which embed CE principles into organisations’ value chains. This paper provides a review of approaches to the circular business model (CBM). We conducted a literature review, including content analysis, and examined publications (51 papers) on circular business models published in English in peerreviewed journals. Our objective was to provide an overview and systematize the stateof-the-art in CE-oriented business model approaches. The following research questions were posed in relation to the objective: Which sub-processes and components are included in the Circular Business Models (CBM)? Which CBM archetypes have already been established? Which strategies and other factors support the creation/ transformation of the CBM? The results of the studies were presented in five areas encompassing the following: 1) development (including the methodologies of development and transformation), value proposition, creation and delivery, 2) CBM archetypes, 3) circular strategies, 4) the determinants of development and transformation of business models for CE. The paper contributes to the improved understanding of circular business models. It consolidates related research by offering an overarching conceptual framework. It also points to the directions of future research.

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