Circular economy business models as pillars of sustainability: where are we now, and where are we heading?

Abstract

The prior literature has discussed the benefits of the circular economy business model (CEBM) while working to streamline the environmental aspect, touching upon the social aspect and improving the economic aspect. These aspects have been widely recognised as pillars of sustainability. Thus, prior scholars have sought to identify the relationship between the CEBM and sustainability. However, the extant literature, which remains relatively nascent, has failed to clarify this linkage for each pillar of sustainability. To address this lacuna, we followed a systematic literature review (SLR) approach to determine the current state of research on the CEBM and sustainability. Our study identifies and presents the thematic foci in the prior literature, which highlight the linkages between the CEBM and the pillars of sustainability. These thematic foci include the CEBM and sustainability, the CEBM and the environmental dimension, the CEBM and the social dimension and the CEBM and the economic dimension. In addition, this SLR recognises various research gaps within each theme and offers actionable avenues for future research. We also propose a conceptual framework, rooted in social capital theory (SCT), that highlights the linkages between the CEBM and sustainability. Our findings reveal that research at the intersection of the CEBM and sustainability considers the CEBM an integral component of sustainability. We conclude by presenting our work's theoretical and practical implications, which can assist scholars and organisations to incorporate the pillars of sustainability within their CEBMs.