Short answer
To successfully implement circular economy principles, design practices must incorporate mechanisms for stakeholder engagement and build organizational agility to adapt to new resource flows and value chains.
- Field
- Innovation & Design
- Source
- Business Strategy and the Environment (2023)
- Method
- Conceptual Framework Development
- Evidence
- Moderate effect
Integrating open strategy and dynamic capabilities provides a robust framework for developing and adapting business models to thrive in the circular economy. This innovation & design research insight is drawn from a 2023 study published in Business Strategy and the Environment. Using Conceptual framework development, researchers explored how this design variable affects real-world outcomes. The key design takeaway: To successfully implement circular economy principles, design practices must incorporate mechanisms for stakeholder engagement and build organizational agility to adapt to new resource flows and value chains.
Open Strategy and Dynamic Capabilities Accelerate Circular Economy Business Model Innovation
Integrating open strategy and dynamic capabilities provides a robust framework for developing and adapting business models to thrive in the circular economy.
Business Strategy and the Environment · 2023
Key Findings
- 01A 'three-pronged' strategy framework can be developed by combining open strategy and dynamic capabilities for circular economy business models.
- 02This framework addresses the strategic implications of transitioning from linear to circular business models.
- 03The research proposes propositions and future research questions at the intersection of circular economy and strategy.
Application
Design takeaway
To successfully implement circular economy principles, design practices must incorporate mechanisms for stakeholder engagement and build organizational agility to adapt to new resource flows and value chains.
How to apply
When designing a new product or service with circular economy principles in mind, consider how to involve suppliers, customers, and even competitors in the strategic development process, and ensure your organization has the flexibility to pivot its strategy as new circular opportunities or challenges arise.
Project actions
- 01When researching circular economy solutions, consider how 'open strategy' can be applied by involving diverse user groups or stakeholders in the design process.
- 02Think about how your design project can build 'dynamic capabilities' by allowing for easy adaptation or modification of the product or system over its lifecycle.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a novel theoretical framework for a critical area of business research.
- +Connects established strategic concepts to the emerging field of circular economy.
Limitations
The conceptual nature of the framework means direct empirical testing within a single design project might be challenging without further research.
Reliability & validity
The reliability and validity of this conceptual framework would need to be established through empirical research, such as comparative case studies or surveys assessing the correlation between the presence of open strategy/dynamic capabilities and the success of circular business models.
Think critically
How might the 'open strategy' aspect of this framework be implemented in a design project for a small, resource-constrained startup versus a large, established corporation?
Design Principles
"Embrace strategic openness and cultivate dynamic capabilities to foster innovation in circular economy business models."
The shift to a circular economy necessitates a departure from traditional linear business models. This research highlights that embracing transparency in strategic decision-making (open strategy) and fostering organizational agility (dynamic capabilities) are crucial for designing and evolving business models that support resource efficiency and value creation in a circular system.
What This Means for Your Design
To make business models work for a circular economy, be open to new ideas from everyone involved and be ready to change your plans quickly when needed.
How to use in your project
- 1.Reference this paper when discussing the strategic considerations for developing circular economy solutions, particularly when exploring stakeholder engagement or adaptive design approaches.
Add to My Project
Quick Cite
Paragraph starter
The transition to circular economy business models necessitates strategic innovation, as highlighted by De Angelis, Morgan, and De Luca (2023). Their work proposes integrating 'open strategy' and 'dynamic capabilities' to create a framework for developing and adapting these models. This approach emphasizes the importance of stakeholder involvement in strategic decision-making and the need for organizational agility to navigate the complexities of circular systems, offering valuable insights for designing sustainable and resilient business solutions.
Source
Business Strategy and the Environment
Open strategy and dynamic capabilities: A framework for circular economy business models research
journal · 2023
View sourceQuestions About This Research
- What does the research say about open strategy and dynamic capabilities accelerate circular economy business model innovation?
- To successfully implement circular economy principles, design practices must incorporate mechanisms for stakeholder engagement and build organizational agility to adapt to new resource flows and value chains. Evidence: Business Strategy and the Environment (2023).
- Why does "Open Strategy and Dynamic Capabilities Accelerate Circular Economy Business Model Innovation" matter for design?
- The shift to a circular economy necessitates a departure from traditional linear business models. This research highlights that embracing transparency in strategic decision-making (open strategy) and fostering organizational agility (dynamic capabilities) are crucial for designing and evolving business models that support resource efficiency and value creation in a circular system.
- How can designers apply this research?
- To successfully implement circular economy principles, design practices must incorporate mechanisms for stakeholder engagement and build organizational agility to adapt to new resource flows and value chains.
- What were the main findings?
- A 'three-pronged' strategy framework can be developed by combining open strategy and dynamic capabilities for circular economy business models.. This framework addresses the strategic implications of transitioning from linear to circular business models.. The research proposes propositions and future research questions at the intersection of circular economy and strategy.
- What research method was used?
- Conceptual Framework Development.
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2023 journal from Business Strategy and the Environment.
- What should I do differently in my next project?
- When designing a new product or service with circular economy principles in mind, consider how to involve suppliers, customers, and even competitors in the strategic development process, and ensure your organization has the flexibility to pivot its strategy as new circular opportunities or challenges arise.
- What are the limitations?
- The paper presents a conceptual framework and requires empirical validation. The specific application of the framework may vary across different industries and organizational contexts.