Critical success factors for circular business models within the agricultural sector

Mechthild Donner (), Anne Verniquet, Agnès de Souza, Jan Broeze, Jim Groot, Katrin Kayser, Romane Gohier and Hugo de Vries ()
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Mechthild Donner: UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Jan Broeze: WUR - Wageningen University and Research [Wageningen]
Jim Groot: WUR - Wageningen University and Research [Wageningen]
Katrin Kayser: International Biogas and Bioenergy Competence Center - Partenaires INRAE
Romane Gohier: UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Hugo de Vries: UMR IATE - Ingénierie des Agro-polymères et Technologies Émergentes - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - UM2 - Université Montpellier 2 - Sciences et Techniques - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier

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Abstract: In the transition from a linear, ‘take-make-dispose' economy to a sustainable usage of all renewable resources in circular or cascading ways, stakeholders' strategies striving for value creation are adapted. Implementing a circular economy requires a change at a system level, involving all actors of value chains within diverse economic sectors. At an enterprise level, innovative business models are needed that offer market opportunities for new products. Circular business models deal with the question of how to create, deliver and capture value with and within closed material loops. We aim to understand under which conditions new business models within the agricultural sector successfully contribute to a circular economy. 33 cases have been studied and semi-structured interviews have been performed, in order to investigate critical success factors. Results show that various success factors exist, which can be grouped in five categories: (1) technical and logistic, (2) economic, financial and marketing, (3) organisational and spatial, (4) institutional and legal, and (5) environmental, social and cultural factors. Findings indicate that the transition to a circular economy in the agricultural sector let individual business models evolve towards dynamic and integrated business models in which the macro-environment sets the boundary conditions for successful operations. Moreover, there is a high degree of interactions between all actors in the circle. This implies that not only an individual companies' business model is impacted, but that a new, integrated business model for all circle actors is required, asking for an open and flexible management and a transparent communication.

Keywords: business model; agro-waste management; value creation; circular economy (search for similar items in EconPapers)
Date: 2019-07-01
New Economics Papers: this item is included in nep-agr and nep-env
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Published in 4. International Conference on New Business Models, Jul 2019, Berlin, Germany

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