Circular business models in Japan: Analysis of circular business transformation through an institutional approach

Nancy Bocken, Kunio Shirahada
Flowchart outlining a circular business institutionalization framework highlighting Japanese strategies. It includes sections on business models, dependencies, institutions, and strategic goals, with green hexagons detailing specific strategies like modify, retain, and compete.

The circular economy is becoming a globalised phenomenon, but the regional emergence of circular business models differs significantly. By adopting a circular business institutionalisation perspective which bridges theory on institutional work and “ecologies of business models” we study the emergence of circular business models in Japan, a region with recent circular policy and business commitment, through a study of 13 companies who implemented circular business models.

The research finds that slow- and close-the-loop circular strategies dominate. Innovations focus on circular design, value chains, rental, lease & sharing, paying per use/performance, buy & take back, remanufacturing and recycling. Interviewed organisations modify existing business models, create entirely new ones, and disrupt existing business models. We coin “collective institutional work”: an approach that reflects stakeholder engaged strategies in Japan. The circular business institutionalisation perspective can inspire comparative research to better understand the emergence of circular business models in various regional contexts.

 

 

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