2020International Journal of Entrepreneurship and Innovation ManagementRequires access

Applying the circular economy to a business model: an illustrative case study of a pioneering energy company

Ville Veikko Piispanen, Kaisa Henttonen, Eeva Aromaa

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Abstract

While the circular economy (CE) has awakened discussion in business model literature, understanding of the circular business model (CBM) and value-creation opportunities in practice has been limited. This study focuses on one sustainable business model archetype: creating value from waste. It supports sustainable development by material circulation. We aim to provide an answer to the question of how a company converts its resources and capabilities into economic value by creating value from waste. This single case study in the Finnish energy sector focuses on a pioneering company applying CBM. The analysis more specifically illustrates the nine main elements of a business model: customer value proposition, segments, customer relationships, channels, key resources, key activities, partners, costs and revenues. Furthermore, we illustrate the internal and external adoption factors required to transform a business model canvas (BMC) to a CBM framework.

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What this paper is about

While the circular economy (CE) has awakened discussion in business model literature, understanding of the circular business model (CBM) and value-creation opportunities in practice has been limited. This study focuses on one sustainable business model archetype: creating value from waste. It supports sustainable development by material circulation. We aim to provide an answer to the question of how a company converts its resources and capabilities into economic value by creating value from waste. This single case study in the Finnish energy sector focuses on a pioneering company applying CBM. The analysis more specifically illustrates the nine main elements of a business model: customer value proposition, segments, customer relationships, channels, key resources, key activities, partners, costs and revenues. Furthermore, we illustrate the internal and external adoption factors required to transform a business model canvas (BMC) to a CBM framework.

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Available abstract

While the circular economy (CE) has awakened discussion in business model literature, understanding of the circular business model (CBM) and value-creation opportunities in practice has been limited. This study focuses on one sustainable business model archetype: creating value from waste. It supports sustainable development by material circulation. We aim to provide an answer to the question of how a company converts its resources and capabilities into economic value by creating value from waste. This single case study in the Finnish energy sector focuses on a pioneering company applying CBM. The analysis more specifically illustrates the nine main elements of a business model: customer value proposition, segments, customer relationships, channels, key resources, key activities, partners, costs and revenues. Furthermore, we illustrate the internal and external adoption factors required to transform a business model canvas (BMC) to a CBM framework.

Key concepts: Value proposition, Business Model Canvas, Business model, Circular economy, Sustainable business, Sustainable Value, Business case, Revenue

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