Advancing the Circular Business Models in Developing Countries: Lessons from China

Abstract

The circular business model is introduced as the pillar to achieve the goals of the circular economy to limit the exploitation of natural resources and waste generation. Since natural resource degradation has become a dreadful problem for developing countries, adopting the circular business model within firms becomes urgent. However, regardless of the effortless pursuit, most developing countries' practices of the circular business model remain humble. In that context, it becomes imperative to refer to the experiences of other developing countries that have strongly developed circular business models. China, the country that has led the world in promoting the circular economy, becomes an ideal example for developing countries to refer to and appropriately apply lessons learned in developing a circular business model. This study provides a holistic literature review on the experiences in promoting the circular business model in China, aiming to provide a panorama of how this strategy has been developed and implemented in other developing countries. The review covers the concept of the circular business model, the practices and challenges of China in implementing the circular business model. Based on an examination of the research, we contribute to the conceptual framework in theoretical and empirical development of the circular business model; offer the long-term circular business model experiences for the transition in developing countries.