Classifying circular business models: a practice-based review

Business models have a crucial role to play in the transition to a circular economy, Circular business model innovation provides an arena tor studying the creation of such circular business models and enables companies the possibility to identity new value creation opportunities, such as capitalizing on embedded value of products over multiple lifecycles. In comparison with the trajectory of traditional business model innovation literature, circular business model innovation is underdeveloped, and this paper aims to make a contribution to the ongoing theoretical discussion. Through review and categorization of :140 circular business model case examples, this paper makes a first attempt to verity previous literature and unify academic and industry understanding of circular business models, The findings are expected to be useful in advancing the field at circular business model innovation and assisting praftitioners in the design and development of new circular business inodels. While the results suggest convergence around three circular business model types: 'Access/Performance Modell 'Extending Product Value) and 'Extending Resource Value) other previously identified circular business model types should not be discounted.