RAIN - A Living Lab Concept for Circular Economy, Cooperation and Innovation in Rural Regions

2020 ◽  
Author(s):  
Klaus Wagner
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Rural Areas ◽  
Open Innovation ◽  
Business Models ◽  
Real Life ◽  
Social Sustainability ◽  
Rural Regions ◽  
Federal Institute ◽  
Living Lab

<p>Klaus Wagner, Sigrid Egartner, Heidelinde Grüneis, Karin Heinschink, Julia Niedermayr</p><p>Federal Institute of Agricultural Economics, Rural and Mountain Research</p><p>Dietrichgasse 27, 1030 Vienna, Austria</p><p>Tel: +43 1 71100 637426, Contact: [email protected], www.bab.gv.at</p><p> </p><p>“Living Lab Research Concept in Rural Areas” (LIVERUR) is an EU-H2020 programme funded project, running from 2018 to 2021. The LIVERUR consortium consists of 23 partners from 13 countries, coordinated by Universida Catolica de Murcia (Spain), see https://liverur.eu.</p><p> </p><p>The project aims at modernising small and medium rural businesses in the EU and its neighbouring countries by introducing the Rural Living Lab research methodology. It will identify, analyse and test various specific rural business model approaches. It drafts a new Regional Circular Living Lab Business Model Concept (RAIN) - integrating living lab-, circular economy- and multi-actor approaches as well as open innovation, ecologic, economic and social sustainability with support of innovative ICT solutions. The RAIN concept helps enterprises and organisations to design their sustainable, innovative and contemporary business models.</p><p> </p><p>Based on theoretical and empirical analyses the RAIN concept is structured according to three different layers:</p><ul><li>The <strong>Core Elements</strong> describe the business model with respect to the topics vision/business idea, people, resources, implementation/development, management/organization, financial aspects, product/service/process, research/innovation, marketing/distribution;</li> <li>In order to enrich the business model the so called <strong>RAIN Principles</strong> (Ecologic, economic and social sustainability, circular economy, open innovation, stakeholder involvement, openness, ICT) should be taken into consideration in each Core Element;</li> <li>Last but not least, external influences on the project or activity – the <strong>Real Life Setting</strong> – has to be reflected and included in the business model (environment and climate, economic and societal context, legal and institutional framework, technical and social infrastructure, food security and safety).</li> </ul><p> </p><p>In LIVERUR 20 projects in 13 pilot regions will be developed based on the RAIN concept. The topics are widespread but all are of high importance in rural regions, e.g. regional food sovereignty, utilization of organic waste, local online-marketing, agriculture-tourism cooperation, sustainable milk-production, energy-production.</p><p> </p><p>The contribution will focus on the development and description of the RAIN concept and its steps of application.</p><p> </p><p>LIVERUR has received funding from the European Union's Horizon 2020 research and innovation programme under grant agreement 773757</p>

“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.

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.

Responsible and Sustainable Business Model Innovation in the Textile Industry

2019 ◽  
pp. 204-243
Author(s):  
Katja Schneider ◽  
Marlen Gabriele Arnold
Keyword(s):  
Business Model ◽  
Textile Industry ◽  
Business Models ◽  
Social Issues ◽  
Social Sustainability ◽  
Sustainable Business ◽  
Cultural Aspects ◽  
External Pressures ◽  
Multiple Case ◽  
Industry Needs

The global textile industry offers huge potentials regarding the transformation towards sustainability. These improvements require a facilitation of business model innovations embedding shifting consumer demands. How can the textile industry drive responsible and sustainable business practices in terms of social sustainability? Tackling this question, a qualitative content-based analysis of current literature conducted highlights main themes and concepts on business model innovations, textile industry, and social sustainability. In addition, an exploratory multiple case study design was used. Results show social sustainability patterns are seldom and often linked to external pressures. This chapter proposes a reorientation towards stronger holistic and inclusive approaches for sustainability and reflects on socio-cultural aspects linked to sustainable textile business models. Progressing sustainability in the textile industry needs both a single consideration of environmental and social issues as well as an integrative and systemic perspective in academia as well as in practice.

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.

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 Living Lab as an Ecosystem for Development, Demonstration and Assessment of Autonomous Mobility Solutions

2019 ◽  
Vol 11 (15) ◽  
pp. 4095 ◽  
Author(s):  
Andreja Pucihar ◽  
Iztok Zajc ◽  
Radovan Sernec ◽  
Gregor Lenart
Keyword(s):  
Autonomous Vehicles ◽  
Large Scale ◽  
Business Models ◽  
Real Life ◽  
Road Accidents ◽  
Innovation Ecosystem ◽  
Living Lab ◽  
Industry Environment ◽  
New Business ◽  
Autonomous Mobility

Autonomous vehicles (AV) have the potential to disrupt the entire transport industry. AV may bring many opportunities as for example reduction of road accidents, less congestion on the roads, and a lower number of vehicles that are better utilized. Full AV also brings new social element as they enable mobility for all. In addition, the use of digital technologies in combination with AV introduces new business models in transportation, where the lines between car ownership, rental, and lease modes are more and more blurred. To explore the potential of AV in a smart city context, the AV Living Lab was created on the premises of BTC City in Ljubljana, Slovenia, in 2017. The AV Living lab was created to test and to learn about real-life solutions for implementation of AV. The underlying concept is BTC City as a Living lab innovation ecosystem, where the latest advanced technologies, business models, and services are tested with real users, real cars, on real roads over the real interactions in a cross-industry environment. In this paper, we describe the AV Living Lab concept and provide details of a specific use case—a large-scale pilot demonstration of AV and future mobility solutions. During the event, users participated in a survey and expressed their attitudes towards autonomous mobility. The results offer the first insights into the readiness of citizens for AV implementation and directs future actions needed for faster adoption of AV and future mobility solutions.

Knowledge strategy and business model conditions for sustainable growth of SMEs

2015 ◽  
Vol 6 (3) ◽  
pp. 246-262 ◽  
Author(s):  
JinHyo Joseph Yun ◽  
WooYoung Jung ◽  
JeongHo Yang
Keyword(s):  
Sustainable Development ◽  
Business Model ◽  
Open Innovation ◽  
Business Models ◽  
Sustainable Growth ◽  
Content Type ◽  
Knowledge Strategy ◽  
Knowledge Strategies ◽  
Closed Innovation

Purpose – The purpose of this study is to figure out the factors for sustainable growth of small- and medium-sized enterprises (SMEs). Design/methodology/approach – In all, 27 SMEs in the area of IT (Information Technology) in Korea were analysed through interview method basically. Findings – It is found that sustainable development of SMEs requires two kinds of open innovation which are knowledge strategy and business model. According to developing process, SMEs change their open innovation strategy in knowledge strategy and business model. The highest growth limit of SMEs depends on open innovation in knowledge strategy and business model in sequence from closed innovation in both, through open innovation in both, to open innovation in knowledge strategy and closed innovation in business model and to closed innovation in knowledge strategy and open innovation in business model. Research limitations/implications – First, the present study was conducted with IT sector SMEs in Korea. It is true that the IT sector is one of the most rapidly changing industrial sectors and is one of representative business types of SMEs in which manufacturing and service industries coexist and diverse sizes of SMEs exist (Malerba, 2002). Second, the present study relies on case study methods. It is true that case study is a method that gives excellent qualitative analysis in firm studies (Yin, 2008). Practical implications – SMEs cannot survive if they do not accept open innovation in knowledge strategy and business model. SMEs that show absolute limitations in resources and manpower should absolutely implement open innovation strategies to secure more diverse resources from markets and external knowledge bases rather than preparing all resources and capabilities by themselves (Van de Vrande et al., 2009; Yun and Mohan, 2012a, 2012b). Social implications – SMEs should bear in mind the two different levels of open innovation, such as knowledge strategies and business models (Chesbrough, 2007; Chesbrough and Appleyard, 2007). Originality/value – SMEs should not confuse between temporally sustainable development and infinite sustainable development. Firms that take closed innovation strategies in both knowledge strategies and business models can also grow for some time. However, because of the deepening of knowledge-based economy, not only the amount of knowledge existing in the world and the speed of knowledge distribution increased but also the customers’ demands and expectations have been observed to increase in the market immediately through social networking sites (SNS), etc. (Yun and Ryu, 2012).

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