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• A theoretical framework is developed and consolidated for value creation in circular business models. • Social dimension of circular business model is perceived as crucial for value creation. • The contextual factors are found to be determining the nature of value creation. • The managerial practices are accounted for mediating the influence of the contextual factors on value creation. • Building sector provides robust opportunities for shared value co-creation. A circular business model represents a holistic system of co-evolving managerial practices for collective value creation, delivery and capture, which provide solutions for sustainable development. Previous research on circular business models aimed to understand value creation mostly in terms of a single managerial practice or in a relatively isolated manner. In particular, little is known regarding the system of managerial practices that creates value. Accordingly, this study proposes a theoretical framework characterized by a set of managerial practices in connection with relevant internal and external contextual factors for creating value within a circular business model. The framework was used in a specific case of a small medium-sized enterprise (SME) operating in building sector, which can be considered a great example of circular economy put into practice. Therefore, the explorative nature of the case allows for deep probing that helps consolidating the framework. Among the main results, essential outcomes included configuring and adapting the company's business model to particular internal and external contextual factors; valorization of local waste by harmonizing managerial practices, and socio-cultural and socio-economic settings, as well as sustainable behaviours among the actors of supply chain. This study contributes to the field of circular business models research by adopting a broader, interdisciplinary approach toward the concept of value creation. Further, it provides managers with a roadmap for creating value by enhancing the degree of circularity within a given context. [ABSTRACT FROM AUTHOR]

Abstract Given the complexity of circular economy implementation, the literature is missing a strategic standpoint. This paper investigates the taxonomy of circular economy implementation strategies at the managerial level by linking it to strategy literature. The taxonomy was developed by using standard k-mean clustering method that incorporates 391 Cradle-to-Cradle product scorecards of 187 companies from 10 different industries. The analysis was based on the relative importance assigned to each competitive capability that defines the circular economy; namely, material health, material reutilization, renewable energy, water stewardship, and social fairness. Three distinct clusters of circular economy implementation strategy groups were observed: (i) founding (recyclers), (ii) development (all-decent circulars), and (iii) maturity (toxicity fighters). All clusters have been present in various industries, although there is an industry effect. The results indicate that each cluster has a different strategy. The results obtained contradict the general assumption and expectation of simultaneous improvement at all circular economy dimensions. Our research contributes to the theoretical understanding of circular economy implementation by providing a taxonomy of strategies. It contributes to the strategy literature by suggesting that the maturity degree of a competitive capability may determine the implementation strategy. For practice, the study presents a road-map for managers to reach higher degrees of circularity. Highlights • Links circular economy literature to strategy literature. • Employs hierarchical k-means clustering method to analyze 391 Cradle-to-Cradle products. • Proposes a taxonomy with three degrees of circularity adopting different strategies. • Suggests that the maturity degree of a competitive capability may determine the strategy. • Contributes to the theoretical understanding of circular economy implementation in the manufacturing industry. [ABSTRACT FROM AUTHOR]