| Title | Exploring business model diversification and circular value creation in digital platforms for circular economy: insights from Chinese preowned electronics industry |
|---|---|
| ID_Doc | 5356 |
| Authors | Chen, XL; Shen, CY; Zheng, WY |
| Title | Exploring business model diversification and circular value creation in digital platforms for circular economy: insights from Chinese preowned electronics industry |
| Year | 2024 |
| Published | |
| Abstract | Purpose Circular economy firms, unlike those in a linear economy, encounter significant challenges due to the nature of nonstandardized products, such as asymmetric information on product specifications and highly dispersed supply and demand. Consequently, achieving large-scale operations becomes inherently difficult for them. However, when digital platform-based circular firms adopt diversified business models, their value creation has the potential to achieve significant scale. This study aims to answer "How do digital platform-based circular firms scale up value creation through business model diversification?". Design/methodology/approach The authors use a qualitative case study design with a longitudinal (2011-2023) analysis of the various business models developed by ATRenew, a leading firm in the Chinese preowned electronics industry. Findings The authors find that the recycling business model can act as a "cornerstone" business model for a circular firm to integrate the business model portfolio by leveraging the most synergies (or complementarities) with other business models. Besides, digital platform-based circular firms can effectively scale up value creation by leveraging capability complementary on the supply side, through establishing industrial infrastructure shared with the platform ecosystem; and by leveraging customer complementary on the demand side, through activating the dual role played by platform users as suppliers and consumers. Originality/value The authors contribute to the circular business models literature with three mechanisms to scale up circular value creation through business model diversification and advance a set of propositions to be tested in future research. This also has important practical implications for circular economy platform businesses. |
Similar Articles
| ID | Score | Article |
|---|---|---|
515
|
Woldeyes, TD; Muffatto, M; Ferrati, F Archetypes of Business Models for Circular Economy: A Classification Approach and Value Perspective(2023) | |
| 438
|
Antikainen, M; Uusitalo, T; Kivikytö-Reponen, P Digitalisation as an Enabler of Circular Economy(2018) | |
| 1237
|
Lewandowski, M Designing the Business Models for Circular Economy-Towards the Conceptual Framework(2016)Sustainability, 8, 1 | |
| 168
|
Ranta, V; Aarikka-Stenroos, L; Väisänen, JM Digital technologies catalyzing business model innovation for circular economy-Multiple case study(2021) | |
| 4052
|
Ranta, V; Aarikka-Stenroos, L; Makinen, SJ Creating value in the circular economy: A structured multiple-case analysis of business models(2018) | |
| 626
|
Salvador, R; Barros, MV; Freire, F; Halog, A; Piekarski, CM; De Francisco, AC Circular economy strategies on business modelling: Identifying the greatest influences(2021) | |
| 27084
|
Whalen, K Classifying circular business models: a practice-based review(2017) | |
| 2441
|
Neligan, A; Baumgartner, RJ; Geissdoerfer, M; Schöggl, JP Circular disruption: Digitalisation as a driver of circular economy business models(2023)Business Strategy And The Environment, 32, 3 | |
| 2153
|
Kim, CH; Kuah, ATH; Thirumaran, K Morphology for circular economy business models in the electrical and electronic equipment sector of Singapore and South Korea: Findings, implications, and future agenda(2022) | |
| 16727
|
Huynh, PH Enabling circular business models in the fashion industry: the role of digital innovation(2022)International Journal Of Productivity And Performance Management, 71, 3 |