Next Article in Journal
Evaluation Model for the Level of Service of Shared-Use Paths Based on Traffic Conflicts
Next Article in Special Issue
The Critical Factors Affecting the Consumer Reselling of Limited Edition Products: A Case in the Korean Fashion Sector
Previous Article in Journal
Influence of Challenge–Hindrance Stressors on Unethical Pro-Organizational Behavior: Mediating Role of Emotions
Previous Article in Special Issue
Sustainable Move towards Flexible, Robotic, Human-Involving Workplace
Open AccessArticle

Exploring Paradoxical Tensions in Circular Business Models—Cases from North Europe

Department of Planning, Aalborg University, 9000 Aalborg, Denmark
Sustainability 2020, 12(18), 7577; https://doi.org/10.3390/su12187577
Received: 14 August 2020 / Revised: 7 September 2020 / Accepted: 10 September 2020 / Published: 14 September 2020
(This article belongs to the Special Issue Sustainable Consumption and Production)
Circular Business Models (CBMs) are a tool that allows private sector organizations to reconcile circularity (i.e., narrowing, slowing and closing resource flows) and commercial value creation. However, these two elements are not always aligned; they can be contradictory. This makes the relationship between circularity and commercial value creation, in the context of CBMs, a paradoxical tension. These types of tensions are particularly challenging since the elements that create the tension cannot be removed, instead, both elements must remain in place and the tension between them must be continuously managed. This article explores the main paradoxical tensions and management strategies in the context of CBMs through an integrative literature review as well as an empirical study. The integrative review helped identify three literature streams that provide key insights regarding paradoxical tensions of CBMs, namely corporate sustainability, servitization and circular economy. The empirical study suggested six paradoxical tensions inherent to CBMs: (1) using waste as a resource; (2) design of circular products; (3) improving aesthetics of used products; (4) matching supply and demand; (5) Balancing costs in circular activities; and (6) managing resistance from the value chain. The findings from the literature review as well as the empirical study are compared and discussed. Overall, this article sheds light on the paradoxical tension between circularity and commercial value creation that sits at the core of CBMs as well as the potential managerial strategies suitable for dealing with this tension. View Full-Text
Keywords: circular economy; business models; paradoxical tensions circular economy; business models; paradoxical tensions
Show Figures

Graphical abstract

MDPI and ACS Style

Huerta Morales, A. Exploring Paradoxical Tensions in Circular Business Models—Cases from North Europe. Sustainability 2020, 12, 7577.

AMA Style

Huerta Morales A. Exploring Paradoxical Tensions in Circular Business Models—Cases from North Europe. Sustainability. 2020; 12(18):7577.

Chicago/Turabian Style

Huerta Morales, Alberto. 2020. "Exploring Paradoxical Tensions in Circular Business Models—Cases from North Europe" Sustainability 12, no. 18: 7577.

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Search more from Scilit
 
Search
Back to TopTop