A Systematic Literature Review on the Transition to Circular Business Models for Small and Medium-Sized Enterprises (SMEs)

Swee Kuik (), Akhil Kumar, Li Diong and Joowon Ban
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Swee Kuik: School of Business and Law, College of Business, Central Queensland University, Brisbane, QLD 4072, Australia
Akhil Kumar: Smeal College of Business, Pennsylvania State University, University Park, PA 16802, USA
Li Diong: Faculty of Business, School of Commerce, University of Southern Queensland, Toowoomba, QLD 4350, Australia
Joowon Ban: School of Business and Law, College of Business, Central Queensland University, Brisbane, QLD 4072, Australia

Sustainability, 2023, vol. 15, issue 12, 1-22

Abstract: The transition of a business to a circular business model (CBM) calls for significant and ongoing shifts in different business management models and strategies. However, there is a lack of research focused on the technological, financial, societal, and institutional influences on the CBM transition in small and/or medium-sized enterprises (SMEs). To address this gap, our study develops a theoretical framework for the transition towards CBM. We conducted a systematic literature review with the objective of determining the relationships among technological, financial, societal, and institutional influences for CBMs. Following this, we then established a conceptual framework that comprises these four key influences for a transition plan in the context of an innovative business model with a focus on the value proposition, value creation, and value delivery. An illustrative case example of the manufacturing industry for the transition plan to CBM was presented as well. The proposed framework is designed to lead the shift towards circular economy-oriented business models that aim to promote sustainability in business. In addition, we uncovered several potential avenues for further investigation. We expect the framework towards both contribute to the expansion of the existing body of research in the field and provide business practitioners with guidelines on the CBMs’ transition for SMEs.

Keywords: circular economy; circular business models; business model innovation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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