INTEGRATING CIRCULAR BUSINESS MODELS ACROSS PRODUCTS, MANUFACTURING, AND THE BUILT ENVIRONMENT: A CROSS-SECTORAL FRAMEWORK FOR SUSTAINABLE TRANSITIONS
Keywords:
Circular economy, circular business model, product–service systemAbstract
Background: The transition toward a circular economy (CE) has gained increasing prominence as industries seek sustainability and resource efficiency. Prior research has illuminated diverse circular business models (CBMs), especially product–service systems (PSS), remanufacturing and reuse, and circular construction practices. Yet, these efforts largely remain siloed by sector—manufacturing, consumer goods, built environment, construction—with limited theoretical convergence and cross-sectoral synthesis. Purpose: This study aims to develop a unified, integrative conceptual framework that bridges CBMs across sectors, especially linking manufacturing and product-level circularity with building-level and construction-level circularity, under a life‑cycle and diffusion dynamics lens. Methods: Through an extensive conceptual analysis and synthesis of existing literature—including life‑cycle modeling, diffusion frameworks, PSS and business model studies, and circular construction reviews—this paper constructs a cross-domain integrative model. It draws particularly on diffusion and product‑life‑cycle modeling of circular transitions (e.g., Sigüenza et al., 2021), empirical studies of remanufacturing and reuse (e.g., Veleva & Bodkin, 2018), PSS business model configurations (e.g., Pieroni et al., 2019), and circular construction frameworks (e.g., Kanther, 2025; Mhatre et al., 2021). Findings: The proposed integrative framework reveals synergies and common drivers across sectors (e.g., resource efficiency, regulatory push, digitalization), while highlighting sector-specific barriers (e.g., product complexity, regulatory constraints in real estate, consumer behavioural inertia). The model underscores the catalytic role of digital information systems (e.g., PLM, BIM) in enabling transparency, traceability, and decision-support across life‑cycles. Implications: The unified framework offers a theoretical foundation for policymakers, practitioners, and researchers seeking holistic circular transition strategies. It suggests avenues for cross-sectoral policy design, standardized circular metrics, and integrated digital tools. It also outlines future empirical research directions—especially quantitative modeling of cross‑sector resource flows, and exploration of circular finance models.
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