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The rapid development of information and communication technologies (ICT) has enabled the prevailing digital transformation (i.e. digitalization), where physical products can be readily digitized in the virtual space and seamlessly interconnected. Meanwhile, industries are ever increasingly adopting service business models (i.e. servitization), so as to offer not only physical products but also services as a solution bundle to meet individual customer needs. Such convergence of both digitalization and servitization (i.e. digital servitization) has triggered an emerging IT-driven business paradigm, smart product-service systems (Smart PSS). As a novel paradigm coined in 2014, to the authors' knowledge, only 2 conference papers have provided some literature review to date, and many issues remain uncovered or not comprehensively investigated. Aiming to fill this gap, this paper has conducted a systematic review of Smart PSS or related papers published ever since its first brought up to date (30/06/2019), and selected 97 representative items together with other 37 supplementary works to summarize the tendency towards Smart PSS, its business and technical aspects, current challenges, and future perspectives. From the survey, it is found that several hybrid concerns are the key challenges faced, and self-adaptiveness with sustainability, advanced IT infrastructure, human-centric perspectives, and circular lifecycle management are the core future perspectives to explore. It is hoped that this work can attract more open discussions and provide useful insights to both academics and industries in their exploration and implementation of Smart PSS. [ABSTRACT FROM AUTHOR]

Drawing on the concept of decoupling, from institutional theory in organizational studies, this paper explains how organizations mitigate demands for circularity. Seven Swedish apparel companies that have started collecting used clothes as a form of engagement with circular business models serve as case studies. The paper shows how outsourcing and internal separation allow these companies to buffer their business model and core way of creating value from emerging demands. It also shows how companies pro-actively work at influencing institutional demands for circularity by making these demands compatible with their own interests. The concept of decoupling thereby provides key insights into the development and implementation, or absence thereof, of circular business models. [ABSTRACT FROM AUTHOR]

The current planetary crisis and the perceived urgency necessitates more sustainable production and consumption patterns. Businesses, particularly the multinationals, play a key role in transitioning to a circular economy, which provides a promising approach to achieving the UN Sustainable Development Goals. Industry 4.0 technologies can theoretically support this transition and enable circular economy through, for example, data-driven and smart business processes. However, merging these new technologies with a circular economy is not a straightforward and well-established process and it fundamentally changes the business value chain. Therefore, this paper provides a systematic overview to help better understand the transition process to circular business models and the enabling role of industry 4.0. Merging these concepts underlines that many factors are interrelated and should be investigated in a holistic way instead of siloes. The findings imply that changes transcend business boundaries, including new value chain characteristics and operation models and indicate the interconnected nature of certain factors along the product lifecycle, including service-based models, circular design, reverse flows, consumers and users, and collaborations. This paper proposes a conceptual transition framework to address how new circular business models can integrate digitally adaptive transformations and proposals for future research are reflected upon. • Circular economy transition goes beyond the boundaries of one company and affects many elements in a business model. • Transition to circular business models implies that technological and human changes introduce challenges and paradoxes. • Different Industry 4.0 tools can be applied across business model elements to introduce circular economy principles. • We propose a conceptual transition framework that facilitates the transition from traditional to circular models. • We underline the benefits Industry 4.0 tools offer as well as the interconnected nature of the circular economy transition. [ABSTRACT FROM AUTHOR]

Assessing business models' sustainability impacts has become necessary to help firms transition towards a more sustainable and circular economy. Most firms face multiple challenges in developing sustainable business models. Many of these challenges can be solved by assessing the sustainability impacts of various business model designs. Various sustainability assessment tools and processes have been developed, each fitting different organizational needs in the sustainable business model innovation process. This paper seeks to develop a deeper understanding of this organizational process by analyzing the extant sustainability assessment frameworks and tools for business models and synthesizing the findings into a set of design principles (as meta-artifacts). We draw on a systematic literature review using a qualitative meta-synthesis approach. The proposed design principles can serve as guidelines in helping a company integrate sustainability assessment into its business model innovation process. The paper concludes by presenting a research agenda for future work in this area. [ABSTRACT FROM AUTHOR]

In times of climate change, biodiversity loss, or growing natural resource scarcity, the circular business model (CBM) concept is increasingly attractive, promoting the reorganization of current value creation architectures and supply chains toward a sustainable system of production and consumption. Driven by a vision of continued economic expansion and growth on a planet with finite natural resources, CBMs are endorsed by political institutions, multinational corporations, business consultancies, and academia. Some argue that CBM configurations contribute to a more holistic and radical change in the existing business logics than approaches that achieve incremental resource efficiency improvements. However, how "holistic" and "radical" are CBMs theoretically constituted in academia if we consider the deep structural and paradigmatic shifts in societies necessary to deal with the challenges associated with the Anthropocene? Prior studies do not examine the inherent normative settings and the operational change approaches beneath CBM concepts. To reconstruct the theoretical foundations of CBMs critically, the recent CBM body of academic literature is systematically reviewed according to (1) the legitimacy of CBMs (why should it be done) (2) the modes of value creation and offerings (what should be done), and (3) the core principles of CBM integration into daily business (how should it be done). From this synthesis, the predominant notion of sustainability behind the CBM concept can be revealed. This study argues contemporary scientifically constructed CBMs need to be reconsidered if they are intended to contribute to a profound economic transition toward sustainability. Hence, the paper shows how principles from more "holistic", "radical", and pluralistic economic approaches can widen CBMs and how future research can help to diversify the concept. [ABSTRACT FROM AUTHOR]

Abstract This paper analyses 143 cases about the implementation of various and often interlinked, integrative, Resource Efficiency Measures (REMs). These REMs have been brought in a framework distinguishing on the one hand a cluster of supply side measures, demand side measures and life cycle measures with a synergistic mode of operation. They further have been related to clear classes or Business Model Changes (BMCs) that can support their implementation, notably changes in the supply chain (SC), internal processes (IP), customer interface (CI), financial model (FM) and the value proposition (VP). The BMCs were further characterised in terms of typical Implementation Barriers (IBs) that were reported in the cases, i.e. institutional, market, organisational, behavioural and technological barriers. Our study could not confirm some common theoretical wisdom, such as that firms mainly focus on 'simple' REMs like cleaner production and green products. Indeed, we could not confirm that REMs with a high scope and degree of change, often perceived as complex to implement, faced more Implementation Barriers than others. In general most Implementation Barriers play a role in all types of REMs and BMCs, although also some weak patterns were found. Internal processes BMCs were mainly hampered by institutional and technological factors. Value proposition and Financial model BMCs faced mainly behavioural and market barriers. Customer interface BMCs encountered additionally organisational barriers, while supply chain BMCs face a mix of all classes of barriers distinguished in this study. This is one of the first studies on business models and resource-efficiency looking at a large set of cases which is a step forward from the single case studies that dominate current literature. Yet, follow-up research should overcome weaknesses in our approach, such as a possible bias towards success cases and be more quantitative in analysing the effort it takes to overcome IBs. [ABSTRACT FROM AUTHOR]

Investigating the benefits of sustainable business models for our societies is an important and timely topic. This Special Volume contributes to current research by exploring a variety of sustainable models in use around the world. The accepted articles provide an overview of the various organizational forms, management mechanisms, sustainability solutions, challenges, theoretical lenses and empirical evidence, i.e. fundamental elements in the study of sustainable business models. In this introductory paper, the thirty-seven articles included in this Special Volume are presented, organized in four approaches to sustainable business models: 1/the generalist approach, 2/the technology-based approach, 3/the entrepreneurship and innovation approach and 4/the behavioral approach. In conclusion, avenues for future research are formulated, with a call for solid theory building, more sophisticated research methods, focus on the interplay of sustainable with existing conventional business models, and systemic consideration of the role of governments in advancing sustainable business models. [ABSTRACT FROM AUTHOR]

In this paper, we describe and analyze the novel type of circular economy business model that we define herein as "open circular economy business model." Unlike a typical circular business model based on six R-imperatives (reuse, recycling, redesign, regenerate, reduce, and recover), the analyzed business model leads to greater flexibility as it allows the incorporation of raw materials from the external organizational context into the internal sustainable production cycle. Hence, the societal benefits of adopting an open circular economy business model are potentially more significant than in the case of a conventional circular economy business model because it allows greater distribution of the benefits among heterogeneous external actors that interact with the organization. The study is based on the single case study of the Italian manufacturing company, which obtained significant market success by applying an open circular economy business model in the first few years since its incorporation. By examining in-depth interviews with principal organizational decision-makers triangulated with internal and external secondary data analysis, we describe the model's main characteristics while highlighting its strengths and weaknesses. The commercial success of the studied organization can be an incentive for direct and indirect competitors to implement similar business models resulting in the activation of system-level circularity-oriented behaviors. [ABSTRACT FROM AUTHOR]

This paper examines the role of small entrepreneurial companies and their partnerships with large corporations to advance the circular economy (CE). The authors provide insights from a U.S.-based empirical study that involved 12 companies and examined the emerging drivers, current challenges and future opportunities for advancing waste repurposing and product reuse. Many large companies fail to incorporate CE principles into their business strategy due to lack of mandates, costs, logistical hurdles and inertia. This presents an opportunity for entrepreneurial companies with innovative business models to fill the gap and provide critical links for corporations in reverse supply chains while creating new business opportunities with social benefits. The study found that despite the lack of federal regulations in the U.S. a growing number of corporations are partnering with entrepreneurs to reduce waste and advance product reuse. Key drivers for such trends include sustainability commitments and zero waste goals by companies and municipalities, European Union and U.S. state mandates, reputation and the growing focus on local sourcing. Technology, knowledge, and strategic partnerships between entrepreneurs and corporations play a critical role in reducing financial costs, time, energy, environmental impacts and resources, thus helping establish viable business models. The authors propose a new framework for corporate-entrepreneur collaborations to advance a CE. The study contributes to the research on the relationship between entrepreneurial innovation and the development of CE principles within corporate supply chains, a field that is still in its infant stage. [ABSTRACT FROM AUTHOR]

Product-Service Systems (PSS) are widely recognised as promising models for increasing circularity and sustainability in business, but the extent to which they contribute to sustainability is still debated. While growing and insightful, the literature on PSS sustainability fails to cover all the relevant aspects and to take stock of the ways PSS can be conceptualised as contributing to strong sustainability. We contend that if PSS are to be designed to be strongly sustainable, clear guidance is needed based on both clear normative premises and sound empirical knowledge. Based on systematic and non-systematic literature reviews on the drivers of PSS (un)sustainability and a long-course field work on the development of PSS in Brussels (Belgium), the paper identifies important sustainability challenges that PSS frequently face and that PSS initiatives should address. These challenges are articulated with insights from the sustainable business models literature and anchored in a strong sustainability pre-analytical stance. An original analytical framework based on 5 dimensions (access, substitution, systemic dematerialisation, territorial anchoring and sufficiency) and 15 criteria of Strongly Sustainable Product-Service System (SSPSS) is proposed. • Product-Service Systems (PSS) still need guidance to be developed in a transformative way towards sustainability. • PSS sustainability is appraised in relation to ecological economics, strong sustainability and sustainable business models. • Identification of what makes PSS strongly sustainable is performed through literature reviews and in-depth field work. • Criteria and relevant questions along five dimensions characterise "Strongly Sustainable Product-Service Systems" (SSPSS). • A definition for SSPSS is proposed. [ABSTRACT FROM AUTHOR]

In the rise of global emphasis on circular economy, the automotive firms in an emerging economy such as India in this context are bracing themselves for circular supply chain to recover the expended resources after formalization of End-of-life vehicle (ELV) norms, but these firms lack the knowledge about how to transform from Product-Service System (PSS) business model to circular business model. The extant literature doesn't mention clearly as to what drivers and sub-drivers are needed for adoption of circular principles in PSS business model. This paper aims to propose a multi-theoretical framework (the resource-based view, resource-dependence theory, and stakeholder theory) and identifies and evaluates drivers and sub-drivers. The paper adopts Grey-Decision-Making Trial and Evaluation Laboratory multi-criteria decision-making method to evaluate the inter-relationship between the sub-drivers. A structural model has been developed based on the outcome of the empirical analysis. The study recommends that firm should focus on the important drivers (sub-drivers) – Circular Value Marketing (Recovery/Recycling information on a Product), Circular Services (Supplier adaptability for closed resource loop), Circular Product Design (Design of Sustainability Capability), and Reverse Flow Drivers (Incentives in Secondary Market for Recoverable Products). The implications are related to design, sourcing, and marketing functions and suggest the adoption of the influencing drivers and sub-drivers to create circular value. This study contributes to the literature of the circular supply chain by discriminating the causal relationships between factors that would help managers to develop product service systems strategy(s) to create circular value in the supply chain. [ABSTRACT FROM AUTHOR]

The process of developing sustainable and circular business models is quite complex and thus hinders their wider implementation in the market. Further understanding and guidelines for firms are needed. Design thinking is a promising problem solving approach capable of facilitating the innovation process. However, design thinking does not necessarily include sustainability considerations, and it has not been sufficiently explored for application in business model innovation. Given the additional challenges posed by the need for time-efficiency and a digital environment, we have therefore developed a design thinking-based framework to guide the early development of circular business models in an online and efficient manner. We propose a new process framework called the Circular Sprint. This encompasses seven phases and contains twelve purposefully adapted activities. The framework development follows an Action Design Research approach, iteratively combining four streams of literature, feedback from sixteen experts and six workshops, and involved a total of 107 participants working in fourteen teams. The present paper describes the framework and its activities, together with evaluations of its usefulness and ease-of-use. The research shows that, while challenging, embedding sustainability, circularity and business model innovation within a design thinking process is indeed possible. We offer a flexible framework and a set of context-adaptable activities that can support innovators and practitioners in the complex process of circular business model innovation. These tools can also be used for training and educational purposes. We invite future researchers to build upon and modify our framework and its activities by adapting it to their required scenarios and purposes. A detailed step-by-step user guide is provided in the supplementary material. [Display omitted] • Design thinking frameworks are adapted for circular business model innovation. • The Circular Sprint contains 12 activities to be applied in 7 innovation phases. • The method combined literature research, expert feedback and 6 workshops. • Sustainability orientation can support divergent and convergent innovation phases. [ABSTRACT FROM AUTHOR]

The circular economy is billed as a solution to increase economic growth while reducing environmental impact. It is argued that retaining the value of products, components and materials by fostering the "inner loops", such as reuse, refurbishment and remanufacturing, increases the resource-efficiency. However, published environmental assessments estimating the actual impact of these so-called circular outcomes are inconclusive. This paper presents the results of a systematic literature review of previous environmental assessments on circular products and circular business models, focusing on the tighter technical loops including reuse, refurbishment, and remanufacturing. Mapping reveals factors that influence the environmental impact of circular products and other aspects that should be incorporated in environmental assessments. Even though 239 papers were identified that discuss the environmental impact of circular products and/or circular business models, the far majority only considers a traditional product in a traditional sales model that is remanufactured and compares the impacts of remanufacturing with manufacturing new products. While it is important to quantify the impacts of remanufacturing, it is remarkable that product design strategies for circular economy (e.g. design for remanufacturing, upgradability, modularity) and product-service systems or other types of circular business models are usually not considered in the LCA studies. A lack of studies of products with so-called circular designs that are utilized within circular business models is apparent. In addition, many assessments are static analyses and limited consideration is given to future increases in the share of renewable energy. One can thus question how well the available environmental assessments quantify actual circular products/offerings and the environmental performance gains they could provide in a circular economy. The results show that there is an urgent need for more LCAs done in a way that better captures the potential benefits and deficiencies of circular products. Only then will it be possible to make robust claims about the environmental sustainability of circular products and circular business models and finally circular economy in total. [ABSTRACT FROM AUTHOR]

Today's linear economic model is increasingly problematic. Creating a closed-loop model in production and consumption is a preferred alternative to address environmental and social damages associated with the linear economy. This paper proposes the Ecocanvas as a single tool backed by a methodology for enabling businesses to coherently formulate unique circular value propositions based on a lifecycle perspective. The tool is valuable for rethinking and personalizing sustainability and circular economy by more practically tackling the three dimensions of sustainable development while being adaptable to the organization's context. To a better understanding of the Ecocanvas value, this paper describes the tool's key features and elements through a detailed analysis of small to medium scale winery business models. We contribute to the debate on sustainability and business model literature while providing a practical tool for industry and policymakers transitioning towards a circular model. In addition, this paper contributes to the circular economy body of literature through the development and application of the Ecocanvas that focuses on a holistic approach. As a practical contribution, this study develops and provides a structured, well-researched, and tested tool supported by a methodology that can be used by many stakeholders. Further research could explore the practicality of the Ecocanvas methodology through case studies in different sectors of activities and contexts. Image 1 • Today's linear economic model is problematic, a closed-loop alternative is needed. • Ecocanvas allows organizations to create a unique circular value proposition. • Ecocanvas incorporates environmental and social aspects in a holistic tool. [ABSTRACT FROM AUTHOR]

Circular Economy is the optimal point of sustainability, given that it offers a set of practices capable of generating more sustainable operations, making sustainability feasible in organizations. To measure the innovations brought by Circular Economy, there is a recent need to develop circularity indicators, mainly for micro level (companies and products). Furthermore, the complexity of Circular Economy implies in a set of multi-dimensional indicators instead of a single one. This paper aims to develop a set of indicators linking Circular Economy principles, Circular Business Model and the pillars of Sustainability. The set of indicators was developed based in the hypothetic-deductive approach, following a number of iterations (cycles) and testing the theory in the empirical world. A mix of research methods (e.g. expert consulting, user's feedback, and case studies) was applied. The proposed indicators should be able to achieve the principles of the Circular Economy, and, at the same time, help to meet the specificities and needs of each circular business model. The main contribution of this paper is the development of a group of indicators, focused in the three dimensions of Sustainability (environmental (from material perspective), economic and social), applied in Circular Business Models to capture the innovations brought by Circular Economy that conventional indicators do not measure. Moreover, they will help any company to identify areas with high importance and potential for improvement, and thus increase Circular Economy performance in an efficient, clear and prompt manner. These indicators were applied in three Brazilian companies which have three different Circular Business Models. The results show that data from economic and social dimensions was not available or was diffused in the companies. It represents a barrier because most of the positive impacts gained with Circular Economy are presented in the social dimension, including job creation, mindset change, etc. Image 1075 • Development of a set of indicators applied to Circular Business Models to capture the innovations brought by Circular Economy. • Set of indicators based on Sustainability, principles of Circular Economy and linked with Canvas Business Model Generation. • These indicators were applied in three Brazilian cases: plastic, textile and electro-electronic companies. [ABSTRACT FROM AUTHOR]

No project for the transition to the circular economy can be carried out by a single organisation. This research addresses a gap by presenting a process and a set of tools to facilitate the development of circular business models. It contributes to building circular ecosystems by visualizing the parties involved, connecting and aligning their business models. Applying our framework can train people and help organizations achieve collective outcomes. Credence can be given to our claims as they have been tested in various contexts. 400 students and practitioners were involved in 9 business cases. An application is presented using data from a real case and a combination of role games. • The paper presents a process to develop circular business models for sustainability. • It identifies and justifies the gaps which this circular business model addresses. • It helps visualize, connect and align the circular business models of organizations. • 15 workshops with 400 students and practitioners provided positive feedback. • One of the 9 cases is presented as an illustration of how our model can be applied. [ABSTRACT FROM AUTHOR]