INTEGRATING CIRCULAR ECONOMY AND BUSINESS MODEL INNOVATION: A COMPREHENSIVE FRAMEWORK FOR SUSTAINABLE VALUE CREATION
Keywords:
Circular economy, business models, sustainabilityAbstract
The circular economy (CE) paradigm has emerged as a transformative approach to achieving sustainable development by emphasizing resource efficiency, waste reduction, and extended product lifecycles. This study provides a comprehensive exploration of circular business models (CBMs), their integration with Industry 4.0 technologies, and their potential to generate both environmental and economic value. By synthesizing extensive literature on CE frameworks, remanufacturing, upgradability, and data-driven decision-making, this research constructs an integrative theoretical framework that links circularity principles to strategic business operations. The methodology adopts a systematic literature review approach, drawing on qualitative content analysis and conceptual synthesis to identify patterns, typologies, and gaps in existing CE research. Findings indicate that CBMs are most effective when underpinned by adaptive, data-informed strategies, incorporating technological enablers such as cloud platforms, predictive analytics, and Internet of Things (IoT) systems. However, the study also identifies persistent challenges, including measurement of environmental value, uncertainty in business model innovation, and alignment of circular principles with traditional linear supply chain structures. The discussion elaborates on the theoretical and managerial implications, proposing pathways for enhanced adoption of CBMs across manufacturing, construction, and service sectors. The research concludes by advocating for a holistic approach that integrates policy, technological innovation, and organizational design to foster sustainable value creation within the circular economy.
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