TY - JOUR

T1 - Business Model Experimentation for Circularity: Driving sustainability in a large international clothing retailer

AU - Bocken, Nancy M.P.

AU - Miller, Karen

AU - Weissbrod, Ilka

AU - Holgado, Maria

AU - Evans, Steve

PY - 2017/12

Y1 - 2017/12

N2 - Business model experimentation for sustainability is an intentional and systematic approach to identify, test and learn about value creation strategies that could be adopted by a business in response to current unsustainable trajectories. For businesses such as large clothing retailers the need to alter course is acute as pressure builds from economic, environmental and social angles. The circular economy concept provides a potential powerful lever for change. To date, however, scant research has been conducted on how circular business model experimentation is conducted. We present an in-depth action research case study of a large international clothing retailer embarking on a journey of business model experimentation for circularity: the processes, methods, roles and the organisation in light of the need to address broad sustainability challenges in the business. It was found that experimentation activities oscillated between slow and loaded, and faster and un-weighted modes. While an intentional and stepwise process was sought, in reality it was largely emergent and highly iterative. Through this iterative process, new circular business models were generated that co-exist with current non-circular ones. Confidence in experimentation as a business capability also increased through this collaborative project. This study provides insights into how to conduct lean startup type business model experimentation for circularity in a large organisation. For practitioners, the benefits of academic-industry collaboration, and the oscillating dynamics of business model experimentation are illuminated.

AB - Business model experimentation for sustainability is an intentional and systematic approach to identify, test and learn about value creation strategies that could be adopted by a business in response to current unsustainable trajectories. For businesses such as large clothing retailers the need to alter course is acute as pressure builds from economic, environmental and social angles. The circular economy concept provides a potential powerful lever for change. To date, however, scant research has been conducted on how circular business model experimentation is conducted. We present an in-depth action research case study of a large international clothing retailer embarking on a journey of business model experimentation for circularity: the processes, methods, roles and the organisation in light of the need to address broad sustainability challenges in the business. It was found that experimentation activities oscillated between slow and loaded, and faster and un-weighted modes. While an intentional and stepwise process was sought, in reality it was largely emergent and highly iterative. Through this iterative process, new circular business models were generated that co-exist with current non-circular ones. Confidence in experimentation as a business capability also increased through this collaborative project. This study provides insights into how to conduct lean startup type business model experimentation for circularity in a large organisation. For practitioners, the benefits of academic-industry collaboration, and the oscillating dynamics of business model experimentation are illuminated.

KW - Sustainability sciences, Management & Economics

KW - Business model experiment

KW - Circular business model

KW - Circular economy

KW - Clothing retailing

KW - Lean startup

KW - Sustainable business model

UR - http://www.scopus.com/inward/record.url?scp=85044330077&partnerID=8YFLogxK

U2 - 10.3280/EFE2017-001006

DO - 10.3280/EFE2017-001006

M3 - Journal articles

VL - 2017

SP - 85

EP - 122

JO - Economics and Policy of Energy and the Environment

JF - Economics and Policy of Energy and the Environment

SN - 2280-7659

IS - 1

ER -