Integrated Framework for Quantifying the Economic and Ecological Impacts of Circular Business Model Innovation

The transition to a circular economy is widely regarded as a promising approach to fostering sustainable economic practices. However, due to the complex interdependencies between product characteristics, value creation structures, and the distribution of benefits, companies often face significant challenges in adapting their existing business models. In this context, business model innovation can serve as a key enabler for the implementation of circular economy principles. Although substantial research has been conducted on the early stages of circular business model innovation, the subsequent quantitative assessment of their business impacts remains largely underexplored. However, such quantification is crucial for the targeted and long-term successful implementation of circular business models, and consequently for the effective transition towards a circular economy. To address this research gap, this paper proposes an integrated framework for quantifying the economic and ecological impacts of circular business models for manufacturing companies, incorporating a long-term perspective on the entire product lifecycle and its inherent uncertainties. The framework provides a basis for systematically assessing and prioritizing circular business model approaches. Finally, the proposed framework is validated through a case study within the manufacturing industry.