Business Model Innovation for Resource-efficiency, Circularity and Cleaner Production: What 143 Cases Tell Us

Fernando Diaz Lopez, Ton Bastein and Arnold Tukker

Ecological Economics, 2019, vol. 155, issue C, 20-35

Abstract: This paper analyses 143 cases about the implementation of various and often interlinked, integrative, Resource Efficiency Measures (REMs). These REMs have been brought in a framework distinguishing on the one hand a cluster of supply side measures, demand side measures and life cycle measures with a synergistic mode of operation. They further have been related to clear classes or Business Model Changes (BMCs) that can support their implementation, notably changes in the supply chain (SC), internal processes (IP), customer interface (CI), financial model (FM) and the value proposition (VP). The BMCs were further characterised in terms of typical Implementation Barriers (IBs) that were reported in the cases, i.e. institutional, market, organisational, behavioural and technological barriers. Our study could not confirm some common theoretical wisdom, such as that firms mainly focus on ‘simple’ REMs like cleaner production and green products. Indeed, we could not confirm that REMs with a high scope and degree of change, often perceived as complex to implement, faced more Implementation Barriers than others. In general most Implementation Barriers play a role in all types of REMs and BMCs, although also some weak patterns were found. Internal processes BMCs were mainly hampered by institutional and technological factors. Value proposition and Financial model BMCs faced mainly behavioural and market barriers. Customer interface BMCs encountered additionally organisational barriers, while supply chain BMCs face a mix of all classes of barriers distinguished in this study. This is one of the first studies on business models and resource-efficiency looking at a large set of cases which is a step forward from the single case studies that dominate current literature. Yet, follow-up research should overcome weaknesses in our approach, such as a possible bias towards success cases and be more quantitative in analysing the effort it takes to overcome IBs.

Keywords: Resource efficiency; Business models; Eco-innovation; Sustainability; Circular economy; Cleaner production (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (47)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:155:y:2019:i:c:p:20-35

DOI: 10.1016/j.ecolecon.2018.03.009

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