New Business Model Innovations and Collaborations to Support the Circular Economy

This presentation will discuss the role of industry, emerging business models and B2B collaborations in the U.S. to advance the circular economy (CE). Presenters will share insights from a U.S.-based research project that... [ view full abstract ]

This presentation will discuss the role of industry, emerging business models and B2B collaborations in the U.S. to advance the circular economy (CE). Presenters will share insights from a U.S.-based research project that examines the drivers, barriers and opportunities between large corporations and small entrepreneurial companies (non-profit and for-profit). Many corporations fail to incorporate circular economy principles into their business strategy due to lack of mandates, high costs and complex logistics for circular strategies. Entrepreneurs focused on product reuse, remanufacturing or waste repurposing provide critical links for corporations in reverse supply chains while creating new business opportunities with social benefits.

Research on the relationship between entrepreneurial innovation and the development of CE corporate supply chains is in its infant stage (Heshmati, 2015). Entrepreneurs can advance the circular economy “by helping large corporations and other institutions achieve their sustainability goals and by creating environmentally sustainable products, services, processes and institutions” (York & Venkataraman, 2010).

The presentation examines the following questions: How are such partnerships developed? What conditions (company, product, supply chain, market/societal) have led to their success? What are the main challenges facing entrepreneurs and corporations supporting the transition to the circular economy, and where do they see the greatest opportunities?  What indicators are companies using to measure and communicate impact and what additional environmental, social and economic metrics are needed to better support CE initiatives and more resilient and collaborative communities?

This presentation is based on a research project involving interviews with twelve companies - six large corporations with zero waste goals and six entrepreneurs focused on product reuse, remanufacturing or waste repurposing. Despite the lack of federal regulation to advance circular business models in the U.S., a growing number of companies are responding to customer demand, stakeholder pressure, and cost benefits to CE principles by offering product reuse, remanufacturing and waste repurposing, which provide both business and social benefits (Veleva et. al. 2016). The presentation will include insights from several companies participating in the research project including Dell/EMC, Raytheon, Waste Management, The Furniture Trust, Seeding Labs and Circular Blu. Based on empirical research the authors will discuss emerging business models and innovative collaborations, the main challenges faced by companies interested in supporting the circular economy, and the opportunities they see in the future. This presentation will contribute to the discussion of the role of business in advancing the circular economy.

References Heshmati, A. (2015) “A review of the circular economy and its implementation”, IZA, December 2015, http://ftp.iza.org/dp9611.pdf

Veleva V., Bodkin G., and S. Todorova (2016) “Beyond ‘zero waste’: The need for better measurement and employee engagement to advance a circular economy”, Journal of Cleaner Production (in revision).

York, J.G. and S. Venkataraman (2010). The entrepreneur-environment nexus: Uncertainty, innovation and allocation. Journal of Business Venturing 25(5), 449-463.