Research Output

Josep Oriol Izquierdo Montfort and Yves De Rongé

Transitioning to a circular economy offers an alternative to the current linear model. Research on circular business models is growing but remains at a nascent stage, leaving a gap in understanding how individual firms transition towards circularity. Using a business model innovation perspective, this article analyses how firms adopt circular economy practices and their interrelations, introducing a three-step process to analyse circular business model innovation (CBMI). From a sample of 63 cases, we identify 46 managerial practices in the three value dimensions of a business model, aimed at maximizing resource value retention. Our study proposes five CBMI patterns, consisting of combinations of practices to reshape one or more dimensions of a business model integrating circular principles. By integrating theoretical insights with practical observations, this study contributes by proposing a comprehensive three-step approach to analyse CBMI, and providing practices and actionable patterns for the successful transition to circular business models.

Josep Oriol Izquierdo Montfort, Yves De Rongé, James De Rongé, Özgür Arslan Ayaydin and Sébastien Wilmet

The necessity of limiting firms' environmental impacts has driven the adoption of circular economy models. Despite its importance, there is no clear mapping of the circular strategies used by companies and their financial impacts on firm value. Analysing over 2,000 ESG reports from 2007 to 2020, we identify these strategies and their effect on firm value. We show a growing emphasis on the circular economy, and a prominence of specific circular strategies, particularly recycling, reducing, and reusing. We further find that disclosing these strategies generally decreases firm value. However, when disaggregating the umbrella concept of the circular economy, differences emerge. Long-loop strategies increase value, medium-loop strategies decrease it, and short-loop strategies have no significant effect. We also show that the impact of circular economy strategies is stronger after the Paris Agreement, and for firms in Democratic states. Overall, this study offers the first comprehensive mapping of U.S. circular strategies and their financial materiality.