When industrial companies implement circular business models, what do they really do?

Abstract

Purpose Implementing circular business models (CBMs) in industry is promising yet difficult. Prior research has largely focused on identifying barriers to CBM adoption and the enablers needed to overcome them. However, addressing barriers alone is insufficient, as circularity must ultimately be embedded in companies’ routine-based practices to become operational and scalable. Existing practice-oriented studies remain limited and tend to examine isolated aspects of CBMs, such as value creation, value delivery or value capture, rather than how these dimensions are pursued together. This study aims to address this gap by synthesizing how industrial companies implement CBMs through phase-based practices that span business model dimensions. Design/methodology/approach The authors conducted a three-stage review (identification–screening–eligibility) of academic and gray literature, ending with 87 studies included. Using qualitative content analysis, the authors coded circular practices and their underlying activities and applied the Gioia methodology to visualize them. The study grounds in the Swedish industrial context, given its early and coordinated adoption of circular economy policies and strategies. Findings The findings reveal a three-phased CBM implementation process: designing, developing, and scaling. In the design phase, companies explore circular value logics, build internal capabilities, and renew ecosystem partnerships. The development phase involves testing circular concepts, transforming organizational processes, and launching new revenue models. Finally, the scaling phase focuses on market expansion and digital integration to enhance circular operations. Originality/value This study advances CBM literature by identifying business practices and underlying activities that outline how industrial companies implement CBMs in practice. It structures these practices into a phased framework along with specific actions and key considerations for each phase. Finally, it shows how value creation, delivery and capture are activated differentially across implementation phases.