Circular Business Model for a Sustainable Future

Vincenzo Basile ()
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Vincenzo Basile: University of Naples Federico II

A chapter in Resilient Business Models, 2025, pp 121-152 from Springer

Abstract: Abstract In an era marked by environmental challenges, resource scarcity, and shifting market dynamics, businesses are increasingly compelled to rethink their traditional linear models in favour of more sustainable alternatives. The transition from a “take-make-dispose” paradigm to a circular business model (CBM) represents a fundamental shift that integrates sustainability at its core while fostering resilience and long-term value creation. A circular business model redefines how firms operate by minimising waste, extending product lifecycles, and maximising resource efficiency through strategies such as reuse, remanufacturing, and recycling. This shift is not merely an environmental imperative but also a strategic response to regulatory pressures, consumer demand for ethical business practices, and emerging economic opportunities within the circular economy. This chapter explores the key principles, enablers, and business model innovations that facilitate the adoption of circularity. It examines how companies across industries are embedding circular strategies into their value chains, leveraging digital technologies, and reconfiguring their operations to enhance sustainability and competitiveness. By doing so, organisations can mitigate risks associated with volatile resource markets, regulatory changes, and climate-related disruptions, while simultaneously unlocking new revenue streams and fostering stakeholder engagement. Understanding the transition towards circular business models is essential for scholars, policymakers, and practitioners aiming to build a sustainable and resilient economic future. This chapter provides a conceptual and empirical foundation for analysing how circularity can be effectively integrated into business strategy, offering insights into best practices, challenges, and future research directions.

Date: 2025
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DOI: 10.1007/978-3-032-02766-5_4

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