Business models and closed‐loop supply chains: a typology

Abstract

PurposeTo delineate typologies that capture the relationship between closed‐loop supply chains and value‐added business models, and thereby to suggest a research agenda for the transition to sustainable business.Design/methodology/approachDevelops four new theoretical categories or typologies of closed‐loop systems and applies them to the context of the automotive industry. Conceptual, rather than empirical.FindingsThat hybrid closed‐loop systems can be combined with innovative non‐linear value configurations to enable the transition to more sustainable production and consumption.Research limitations/implicationsIdentifies research agenda to explore how novel business models can integrate with various closed‐loop systems. Theoretical, but grounded in research into the automotive industry.Practical implicationsThat closed‐loop systems are best implemented outside traditional linear value added structures.Originality/valuePlaces closed‐loop systems at the heart of the (redesigned) business model rather than as an accessory that must be adapted to the demands of existing approaches. Suggests scholars should be part of this innovative process, not merely observers.