An exploration of relationship between circular economy and servitisation: a systematic literature review

Sehrish Atif*, Shehzad Ahmed, Piyya Muhammad Rafi-Ul-Shan

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

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Abstract

Purpose: Circular Economy (CE) benefits servitisation by improving productivity, flexibility, and resource efficiency and reducing waste and energy consumption. However, a combinatory investigation of these business models is relatively sparse despite their liaisons. Therefore, this paper focuses on addressing this gap by conducting a systematic literature review and proposing an empirical research agenda for future researchers.

Research Approach: This paper uses a systematic literature review (SLR) approach proposed by (Denyer & Tranfield, 2009) CIMO criteria (Context, Intervention, Mechanisms and Outcome) to understand the link between CE and servitisation. This critical analysis intends to identify how the CE paradigm contributes to the development of the servitisation agenda.

Findings and Originality: The findings of this study reveal that the combined discussions on CE and servitisation are limited irrespective of their interdependencies. The results indicate that the firms are projected to reconfigure their BM elements when their focus shifts from product-oriented to servitisation approach. The findings reveal that identifying the key stakeholders help a firm to choose an appropriate strategy based on sustainable value propositions that entail cost structure and revenue streams to close the resource loop. Overall, most publications are either theoretical frameworks or single/limited case study based research work that discuss different extents of the servitisation approach and how it support the CE value drivers (increasing the resource efficiency, closing the loop, and extending the product lifecycle). Later, few empirical research agenda is proposed with various research directions to address the substantial research gaps on CE and servitisation.

Research Impact: This paper will also provide insight into practices and strategies from servitisation literature in the circular economy context and identify the research gaps for future research.

Practical implications: This study yields some interesting insights for managers and practitioners. It highlights the importance of choosing an appropriate strategy to utilise a firm’s resources in an efficient manner by adapting CE principles into servitisation BM to derive maximum potentials of economic, environmental, and societal dimensions.
Original languageEnglish
Title of host publicationLogistics Research Network Conference 2021
Subtitle of host publicationSustainable and Resilient Supply Chains in Disruptive Times, 8 - 10 September 2021
Place of PublicationCorby
PublisherThe Chartered Institute of Logistics and Transport
Pages115-115
Number of pages1
ISBN (Print)9781904564669
Publication statusPublished - 8 Sep 2021
EventLogistics Research Network Conference 2021: Sustainable and Resilient Supply Chains in Disruptive Times - Online, Cardiff, United Kingdom
Duration: 8 Sep 202110 Sep 2021
http://www.ciltuk.org.uk/LRN2021

Conference

ConferenceLogistics Research Network Conference 2021
Country/TerritoryUnited Kingdom
CityCardiff
Period8/09/2110/09/21
Internet address

Keywords

  • servitisation
  • circular economy
  • product-service system

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