Unveiling the Internal Drivers of Circular Business Model Adoption

Document Type : Original Article

Authors

1 Ph.D. Candidate of Tech-Entrepreneurship, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran

2 Associate Professor, Department of Tech-Entrepreneurship, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran

3 Associate Professor, Department of Tech-Entrepreneurship, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran.

10.22034/jstp.2025.11798.1834

Abstract

Circular economy has emerged as an alternative model to linear systems aimed at achieving sustainable development. To implement this concept at the organizational and business levels, business models are recognized as key tools and important drivers for the transition towards a circular economy. Therefore, understanding the inclination of startups to adopt and implement circular business models is crucial. While the academic literature has examined the impact of various factors on the adoption of circular business models in different industries and organizations, few studies have specifically focused on these factors in startups. To fill this gap and organize the existing knowledge in this emerging field, we conducted a comprehensive review of the literature. This process included systematic searches in reputable databases. Based on a sample of 33 articles gathered from the Scopus and Web of Science databases, our paper identifies and categorizes the internal factors driving the adoption of circular business models in startups. The results of this research show that the internal factors driving the adoption of circular business models in startups include financial incentives; organizational and business incentives; entrepreneurial incentives; networks; technology; internal training and capacity-building, knowledge and innovation; market and customer; sustainable strategy, circular management, and leadership. This research, by providing an integrated theoretical perspective in the field of entrepreneurship, contributes to the area and provides a deeper understanding of how circular business models are adopted in startups. The results of this research can help entrepreneurs, startup managers, and policymakers identify the factors influencing the adoption of circular business models and design appropriate strategies to facilitate this process. The main stakeholders of this research include startups, business consultants, and public and private organizations that work towards promoting circular economy and organizational sustainability.

Keywords

Main Subjects

References

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