Unlocking the circular ecosystem concept: Evolution, current research, and future directions

Circular ecosystem is a fast-growing phenomenon in which a set of autonomous but interdependent actors jointly create and deliver a coherent circular value proposition to the customer. Although the circular ecosystem represents a promising initial bridge between the circular economy literature and the business ecosystem literature, studies remain largely descriptive with a conflictive and imprecise theoretical understanding of what a circular ecosystem is and its unique features. Consequently, the literature on circular ecosystems may tend to diverge due to a proliferation of definitions, rendering the accumulation of knowledge more difficult. To address this gap, we investigate how circular ecosystems are organized and the essential elements incorporated into this type of collaborative structure. Through a systematic literature review, we present the evolution of research over time and provide a framework that synthesizes the five main and unique elements of a circular ecosystem (1. Value, 2. Actors, 3. Data, Materials and flows, 4. Circular activities and strategies, and 5. Governance). In particular, the results show that a value proposition that allows multiple cycles of value (e.g. activities that ensure materials continually returning to the industrial system) is a critical aspect of the ecosystem. Also, the actors within this structure should be balanced to ensure that the circular activities are being successfully performed. The proposed framework serves to characterize a circular ecosystem and to provide unique features that distinguish it from non-circular ecosystems. In addition, this conceptual and strategic tool helps researchers to understand how this type of structure creates and captures value and allows companies to identify ecosystem partners and enhance their circular initiatives. Finally, we summarize the opportunities for future studies.