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UNCERTAINTY MANAGEMENT IN CIRCULAR BUSINESS MODEL INNOVATION – THE CASE OF CIRCULAR PLASTICS
Published online by Cambridge University Press: 19 June 2023
Abstract
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The transition towards circular economy means a radical systemic shift that requires re-design and innovation of business models. However, this radical systemic shift also creates high levels of uncertainty, which pose challenges to the circular business model innovation (CBMI) process. Using the transition towards circular plastics as a case context, this study aims to conceptualize different forms of uncertainty affecting CBMI, and to link them with approaches for managing these uncertainties. Based on interviews with incumbent manufacturing firms that have transitioned to circular plastics, or are in the process of doing so, we identified three domains of uncertainty: goal uncertainty, development uncertainty, and outcome uncertainty. We discuss the nature and sources of these uncertainties, and present different approaches chosen by manufacturers to manage these uncertainties in the context of their business. Our findings highlight the complex nature of uncertainty, and the importance of a nuanced consideration of uncertainty as a factor in the CBMI process. Moreover, our mapping of core uncertainties for CBMI and approaches to manage these uncertainties can guide practitioners in the innovation process.
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This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.- Copyright
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