18285: Unlocking the Potential of Circular Business Models

The transition to a circular economy offers immense potential for businesses to innovate and deliver value while contributing to sustainability. Despite growing interest, circular business models (CBMs) remain at the periphery of mainstream management practice and research. This Professional Development Workshop (PDW) will explore how CBMs can evolve from niche to mainstream, engaging interdisciplinary perspectives, and positioning this research agenda in leading academic journals. In addressing this shift, we will reflect on the key drivers, challenges, and opportunities identified in previous work on CBMs. For instance, Urbinati et al. (2017) propose a taxonomy of Circular Economy Business Models, which categorizes firms based on the degree of circularity they adopt along two main dimensions: the customer value proposition and the value network. Geissdoerfer et al. (2020, 2022) shed light on the distinct challenges different types of organizations face as they navigate the complexities of adopting circular business models. Takacs et al. (2020) identify key internal barriers, such as risk aversion and a lack of resources, along with external challenges including technological, market, and legislative hurdles, which hinder companies’ ability to implement circular economy measures. Through interactive discussions, participants will discuss the shift from a “license-to-operate” to a “license-to-innovate” framework, as discussed in Binder and Braun’s The Circular Business Revolution (2024). This PDW will aim to identify the core challenges and opportunities in advancing circular business models, co-create a future research agenda, and develop strategies for advancing CBM research to the forefront of management scholarship.