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A circular economy perspective embraces a systemic, cradle-to-cradle notion that everything is designed to be reused as long as possible and then recaptured and repurposed when reuse is no longer possible. Designing for a circular economy ecosystem requires a holistic, integrative viewpoint, spanning all aspects of design and development and considering many supply chain actors, far beyond that of traditional supply chains. This edited book adopts a biomimetic lens, highlighting the need for cross-industry flows and need for different actors (beyond producers and consumers) in circular value cycles. Enablers such as incentives and/or legislation are also discussed. While biomimicry provides the structure for organizing this book, individual chapters build on other theoretical lenses and concepts, such as stakeholder theory, etc. The intent is to move beyond a dyadic (buyer–supplier) view, embracing a holistic network or ecosystem view, to consider a cross-industry system perspective, where there is a diversity of actors (covering four actor groups: producers, consumers, scavengers, and decomposers) needed for a working ecosystem. This edited book offers a comprehensive overview of system components and actors, including how the circular economy adds value, the role of producers and consumers, the spectrum of recovery possibilities to return products back to the consumption supply chain, and the essential role of information management.

To create circular economies, we need supply systems to convey materials between their use lives. Often, though, it is not possible to control an entire supply network. Without a coordinator to implement circular economy principles, how can circular supply systems come to be? This chapter sets out to build on complex adaptive systems (CAS) theory and circular economy research to conceptualize how information flows between actors can facilitate the emergence of a circular supply system. It begins by outlining why a supply network can be considered a CAS, as well as the CAS progression from information to adaptation to emergence. Next, it argues that information on local supply networks, extended supply systems, and biosphere impacts is particularly important for circular production. Finally, it concludes with two potential types of emergence that can stem from these information flows: (1) new actor roles and networks and (2) new spatial and temporal patterns. Ultimately, this conceptual overview aims to give researchers and practitioners a CAS frame for thinking about how continual adaptation to information flows can enable change toward circular supply systems.

In research on the circular economy, business models are often taken as a focal point since their essential functions are both to create value and to capture part of that value. This chapter investigates whether and how circular business models can be “opened up” to creating and capturing value by utilizing a firm’s main asset not only in its own operation but also in other firms’ businesses. We hereby take the perspective of producing companies which face various challenges over the entire product life cycle and empirically analyze a case of five companies which are part of a joint innovation toward circularity in the plastics industry. Building on a grounded theory approach, we propose a new framework for companies which combines insights about open business models with circularity. When moving toward circularity, producing companies are advised to expand their dyadic perspective of suppliers, on the one hand, and customers, on the other hand, to a network perspective and open their business models.

This chapter highlights how implementing circular economy principles can help companies working with sustainability to move from a reductionist and waste management approach to marketing competitive circular value propositions that intentionally design out waste (e.g. emissions and pollution) by rethinking, reinventing and redesigning the value chain. Schijvens, a Dutch family-owned corporate fashion textile company, acts as a case for exemplifying successful implementation of circular economy principles as a marketing strategy in a sector that struggles with finding solutions to the ethical challenges of producing and marketing textile fashion. The textile industry has, for many years, been accused of production that is based on environmentally harmful processes and conditions that are not socially fair. Circular economy principles provide a range of suggestions to address the ethical challenges occurring from covering the human needs of having clothes to wear. Yet, implementing circular economy principles is not a panacea. It is not only a question of delivering a technological quick fix but also a question of managing the new processes and human mindset guiding the actions in the value chain. This chapter, therefore, outlines reasons for a different perspective on the traditional linear value chain and related implications managers face when undertaking a journey from sustainability based on a reductionist approach to a closed-loop approach. It is argued that implementing circular economy principles by pro-actively managing the value chain processes based on eco-centric dynamic capabilities can provide even more radical changes than the incremental reductionist approach often associated with being a green sustainable company.

Amid rising environmental concerns, Industry 4.0 and blockchain technology (BCT) are transforming circular economy practices and prevailing business models. Recognizing the same, the current study examines the role of advanced technology in circular practices and their impact on eco-environmental performance, which influences organizational performance. The study collects data from 185 food processing enterprises that are located in Malaysian territories. By employing CB-SEM modeling, the study provides three key findings. First, Industry 4.0 significantly improves the circular economy practices. Second, circular economy practices help to improve firms' environmental performance but did not stimulate operational performance. Third, higher eco-environmental performance significantly boosts organizational performance. This study set out the foundations for participating countries/firms that help to achieve sustainable goals through the integration of blockchain technology in circular economy practices.

This chapter focusses on the links between economic ideas, sustainability and the circular economy. Economics begins with the view that all resources are scarce and careful and informed choices must be made to ensure resources are used efficiently and not wasted. Given the fundamental importance of markets to human resource allocation decisions, unless economic concepts, especially markets and prices, are used to help transition towards the circular economy, a sustainable economic growth process is unlikely to be achieved. Economists have long grappled with the problems of resource depletion, unsustainable growth and intergenerational equity. Their ideas and views about the interconnection between markets, the environment and resource use have been in existence for several centuries. While frequently overlooked, some of these ideas have important insights for sustainable development and the implementation of a circular economy. The chapter will consider how economic concepts could be used to help society transition to a circular economy. It will also argue that difficulties with the implementation of a circular economy lie less with the application of economic instruments, and more with the political and institutional constraints that reduce our ability to think creatively and innovatively about ‘cradle-to-cradle’ processes.

Fashion/textile small- to medium-sized enterprises (SMEs) are currently adding value to previously discarded textile waste by applying practical skills, knowledge and expertise to rework and reuse this material. As a result, sustainable design strategies such as zero-waste pattern-cutting, design for disassembly and upcycling are beginning to emerge. However, the scope for redesign will always be limited and the complete lifecycle of the material used needs to be considered at the front-end of the innovation process, to optimise material lifespans and reduce consumer waste. Further work is also required to inspire and educate the next generation of designers to the creative potential of reuse, and help the industry to understand its viability, scalability and role in the future. This chapter explores how the principals of the circular economy might support business model innovation within fashion and textiles. To this end, an exploratory canvas tool for SMEs, ‘Circular by Design’, was devised to aid SMEs to embrace closed-loop systems and to identify the most appropriate sustainable design strategies for their business.

This chapter explores the role of diversity in the emergence of circular business models by focusing on circular economy innovative born-global start-ups. Diversity refers to a wide range of characteristics that differentiate an individual or group. These include legally protected and/or demographic characteristics, such as age, as well as identity-shaping characteristics, such as cognitive traits and experience. Diversity in organizations has been mostly explored in terms of the former, i.e., culture, age or ethnicity as a key factor in organizational innovation and enhanced performance. This chapter offers a more holistic view on the role of diversity in relation to emerging circular business models. It shows how diversity of previous knowledge, experience, ethnicity and the shared ideation of the organization's founders can be used as compatible and complementary inputs, which can lead to the emergence of a global circular business model by using integration, coordination and fast scaling up. The analysis is on the level of firm micro-foundations. Using data from three circular born-global companies from a single country context, the study identifies different types of diversity as contributing to the emergence of these business model and their configuration. We conclude that circular born-global business models are nurtured by the shared ideation and values of the business model founders, while the design of the business model is enabled by the diversity of competences and capabilities stemming from the founders' knowledge, past experience and diaspora networks. Such a perspective suggests that managers need to adopt a holistic approach in employing diversity in business model configuration in relation to common drivers and ideation, and organizational purpose.

The study aims to contribute to the debate on how to identify and manage an organization’s sustainability-related resources and processes by understanding the impact of business activities on the environment and evaluating actions to ameliorate their impacts. Within this debate, and specifically taking into consideration the opportunity to support circular economy actions and initiatives, the study focuses on integrated reporting (IR) practices. In detail, this study advocates the joint use of IR principles with the dynamic resource-based view (DRBV) of the firm, adopting their representation of resources and impact of the business activities to identify environmental friendly “hot spots” in organizations. The framework is illustrated through two exploratory case studies.