Circular business models: A review

This review examines circular business models in order to clarify the theoretical conceptualisation of these models by systematising existing literature. Four core strategies have emerged: closing loops (recycling), extending product lifetimes, intensifying use (e.g. through sharing models) and dematerialisation (replacing products with services).he study examines circular business models and aims to provide clarity in the theoretical conceptualisation of these models by systematising existing literature. Four main strategies are identified: Closing loops (recycling), extending product useful life, intensifying use (e.g. through sharing models) and dematerialisation (replacing products with services).

The authors emphasise the importance of business models based on circular principles in order to create economic value and achieve environmental and social goals at the same time. This requires companies to adapt their value chains and business logic. The study provides defined terms and conceptual frameworks that can serve as guidelines for companies to successfully adapt their business models to the principles of the circular economy and thus operate more sustainably and resource-efficiently.

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