Decoding Circular Business Models: A Study of Terminological Foundations in Classification Schemas

Izquierdo Montfort, Josep Oriol;De Rongé, Yves
(2024) 9th International Conference on New Business Models. Sustainable business models for the digital, green and inclusive transition — Location: Mondragon University, Donostia, Spain (4.July.2024)

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In integrating different circular economy principles in their business model, companies implement a diverse array of strategic initiatives, resulting in a multitude of circular business models (CBMs). Academic research has sought to classify these models, developing various typologies and taxonomies, instrumental for theorisation and creating mid-level theories. This article conducts a critical review of academic research and identifies 32 distinct CBM classification schemas and 241 CBM classes. Our analysis reveals three common shortcomings impeding robust and effective classifications: (1) the use of unclear classification criteria, (2) the use of commonly used CBM terms with significant variations in meaning, (3) the inaccurate use of the terms 'taxonomy', 'typology' and other related terms blurring their distinctions. In addition, we contribute by providing a glossary with the 15 more frequent CBM terms, together with their definitions and relevant remarks, enhancing a shared understanding within the academic discourse. Finally, we propose a flexible classifier-centric model with 16 classification criteria allowing for the construction of different classification schemas depending on the classifier’s aim. This article contributes to enhance the clarity, coherence, and applicability of CBM classifications and classes, ultimately facilitating a more comprehensive understanding of CBMs benefiting both research and practice, and proposing further research avenues.
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Izquierdo Montfort, J. O., & De Rongé, Y. (2024). Decoding Circular Business Models: A Study of Terminological Foundations in Classification Schemas. 9th International Conference on New Business Models. Sustainable business models for the digital, green and inclusive transition, Mondragon University, Donostia, Spain. https://hdl.handle.net/2078.5/218144