Value Creation in Component Reuse Circular Business Model Innovations

Abstract

Despite the surging research on circular business models and awareness of the radical transformations that reuse practices cause in industrial value chains, there is minimal knowledge on what are the critical mechanisms of value creation and capture for reuse alongside the technical process. To close this important gap in the intersection of technical- and business-oriented circular economy research, we conduct a multiple-case analysis of two construction industry value chains carrying out reuse of concrete elements. Our extensive analysis reveals nine distinct mechanisms of value creation and capture in component reuse – namely design for reuse, value harvest, component optimization, component validation, value relocation, value chain design, market creation, data management and coping with regulatory and societal impacts. Moreover, we reveal which determinants govern the value creation and capture potential of these mechanisms. Our results offer managers extensive tools to optimize reuse value chains for maximal value creation and capture.