Actors and supply chain strategies in the circular economy

The circular economy transforms fundamental, well-known business logics. To remain competitive and seize new business opportunities, companies are forced to implement innovative, circular business models. However, the current literature on circular business models still lacks a comprehensive perspective on options for companies to engage in various positions and functions along circular supply chains and how to develop corresponding business models. Therefore, a major challenge for companies remains in the identification of business opportunities, i.e., the positioning within emerging circular economy ecosystem, and how to adapt business models accordingly. Addressing this gap, this article provides a novel conceptual framework for circular business model patterns. First, the framework proposes three key actors (manufacturer, integrator, enabler) and three key supply chain strategies (creating, stretching, sustaining cycles) within a circular economy to derive nine circular business model patterns. Second, based on innovation strategies (closed, open) and intensities (low, high), this article characterizes four novel approaches to circular business model innovation. Finally, the framework is illustrated using the case of the emerging electric vehicle battery industry shifting towards a circular economy.