Le änen, Ja kko; Ran a, Val e i; Pa ala, Samuli
A icle
In sea ch o sus ainabili y gains om he complemen a i y be ween
alue c ea ion, alue p oposi ion and alue cap u e elemen s o
ci cula business models
Jou nal o Business Models (JOBM)
P o ided in Coope a ion wi h:
Aalbo g Uni e si y, Aalbo g
Sugges ed Ci a ion: Le änen, Ja kko; Ran a, Val e i; Pa ala, Samuli (2024) : In sea ch o sus ainabili y
gains om he complemen a i y be ween alue c ea ion, alue p oposi ion and alue cap u e
elemen s o ci cula business models, Jou nal o Business Models (JOBM), ISSN 2246-2465, Aalbo g
Uni e si y Open Publishing, Aalbo g, Vol. 12, Iss. 2, pp. 1-24,
h ps://doi.o g/10.54337/jbm. 12i2.8841
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1
Jou nal o Business Models (2023), Vol. 11, No. 5, pp. 1-24
In Sea ch o Sus ainabili y Gains om he Complemen a i y
Be ween Value C ea ion, Value P oposi ion and Value Cap u e
Elemen s o Ci cula Business Models
Ja kko Le änen1, Val e i Ran a2, Samuli Pa ala2
Abs ac
Pu pose: Func ioning o business models ha ollow he philosophy o ci cula economy is a g ow-
ing esea ch heme bu discussion abou he po en ial and he limi a ions o such business models
emains uns uc u ed. We p o ide a ocused pe spec i e on he meaning o complemen a i y be-
ween he elemen s o business models.
App oach: Clus e analysis echniques allow us o explica e co ela ions be ween he business
model elemen s, which in u n enables us o demons a e how complemen a i y be ween hese ele-
men s can s eng hen he c ea ion o bo h socie al and cus ome alue.
Findings: By analyzing 92 companies, we poin ou why complemen a i y be ween he alue c e-
a ion, alue p oposi ion and alue cap u e elemen s is an impo an phenomenon. We also show how
complemen a i y can be u ilized in he de elopmen o ci cula business models.
Social and p ac ical implica ions: Ou indings a e p omising because nume ous socie al and cus-
ome alue p oposi ions seem o be compa ible wi h di e se business model elemen s. This means
ha ci cula ea u es can be a ached o a ious ypes o business. Based on ou analysis, we p o-
pose ha business model complemen a i y should be ho oughly conside ed in he u u e e o s o
de elop mo e ambi ious ci cula business models.
Keywo ds: business model; ci cula economy; sus ainabili y; alue cap u e; alue c ea ion; alue p oposi ion
Please ci e his pape as: Le änen, J., Ran a, V., and Pa ala, S. (2023b), In Sea ch o Sus ainabili y Gains om he Complemen a i y
Be ween Value C ea ion, Value P oposi ion and Value Cap u e Elemen s o Ci cula Business Models, Vol. 11, No. 5, pp. 1-24
1 Depa men o Sus ainabili y Science, LUT Uni e si y, Finland. Co esponding au ho . Add ess: Mukkulanka u 19, 15210 Lah i, Fin-
land; email ja kko.le [email p o ec ed], el. +358 50472 5686.
2 Facul y o Managemen and Business, Tampe e Uni e si y, Finland; email al [email p o ec ed]
3 Depa men o Managemen S udies, Aal o Uni e si y, Finland; email samuli.pa ala@aal o. i
Jou nal o Business Models (2023), Vol. 11, No. 5, pp. 1-24
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2
In oduc ion
The ci cula economy has been iden i ied as a pa h-
way owa ds educing he o e exploi a ion o na u al
esou ces and he concep has ecei ed inc eased
in e es wi hin esea ch (Tü keli, Kemp, Huang,
Bleischwi z and McDowall, 2018), policymaking (Mc-
Dowall, Geng, Huang, Ba eko a, Bleischwiz and Tu -
keli, 2017), and business (Mu ay, Skene and Haynes,
2017) communi ies ac oss he globe. A i s co e, he
ci cula economy is a sys em designed o be es o a-
i e wi h an aim o eplace he “end-o -li e” concep
wi h he con inuous ci cula ion o p oduc s and ma-
e ials (Ellen MacA hu Founda ion, 2017; Geissdo-
e e , Sa age , Bocken and Hul ink, 2017; Kalmyko a,
Sadagopan and Rosado, 2018). In Eu opean Union,
o example, ci cula economy ac ion plan is a key
pa o G een Deal p og am ha aims o decouple
economic g ow h and esou ce use while simul ane-
ously achie ing ne -ze o g eenhouse gas emissions
by 2050. Cu en ly only a small pa o he o al con-
sump ion and p oduc ion can be conside ed uly
ci cula (Guzzo, Pigosso, Vidie a and Masca enhas
2022; de Wi , Ve s ae en-Jochemsen, Hoogzaad
and Kubbinga, 2019).
Business model app oach (Zo and Ami , 2010) has
gained a en ion as a heo e ical pe spec i e on he
capaci y o businesses o ad ance ci cula economy
(Cen obelli, Ce chione, Chia oni, Del Vecchio and
U bina i, 2020; Linde and Williande , 2015; Me li,
P eziosi, and Acampo a, 2018). Discussion abou
ci cula business models is a pa o wide e o o
unde s and how sus ainabili y- ela ed goals can be
in eg a ed in o business ac i i ies (Bocken, Sho ,
Rana and E ans, 2014; Bocken, de Pauw, Bakke , and
an de G in en, 2016; E ans, Vladimi o a, Holgado,
an Fossen, Yang, Sil a and Ba low, 2017; S ubbs and
Cocklin, 2008). Resea ch on ci cula business mod-
els aims o explain how socie al alue – in o ms o
wellbeing o humans and he na u e (Bocken e al.,
2016; Po e and K ame , 2011) – can be p oduced in
addi ion o ypically conside ed cus ome alue – in
o m o a bene i ha cus ome ge s om buying a
p oduc o se ice (Ande son, Na us and an Ros-
sum, 2006; Payne, F ow and Egge , 2017). While e-
sea ch in his a ea is g owing as (see e.g. Bocken
and Ri ala, 2021; Fe asso, Beliae a, K aus, Clauss
and Ribei o-So iano 2020; Val e, Laza e ica and
Humalis o, 2021), s ill li le is known abou how o
combine di e en ypes o ci cula alue c ea ion in
di e en si ua ions and ope a ional a eas (Laasch,
2018; Lüdeke-F eund, Rau e , Pede sen and Nielsen,
2020; Ran a, Aa ikka-S en oos and Mäkinen, 2018a).
Also conce ns ha e been aised ega ding he sus-
ainabili y aspec s o ci cula business models (e.g.
Figge and Tho pe, 2019; S ewa and Nie o, 2018;
Zink and Geye , 2017). Fo example, i has been a -
gued ha in many cases de elopmen o ci cula
business ac i i ies o e ly ocuses on he business
bene i s achie ed only h ough cus ome alue
c ea ion (Ho mann, 2019). While he no ions abou
he limi a ions o ci cula economy business mod-
els (Ki chhe , Reike and Hekke , 2017; Ko honen,
Honkasalo and Seppälä, 2018) a e o en well jus i-
ied, c i icism has in many cases been uns uc-
u ed and emained a a gene al le el. Fo example,
i is known ha di e en companies ace di e en
challenges in he implemen a ion o ci cula ac i i-
ies in o hei business models (Rizos, Beh ens, an
de Gaas , Ho man, Ioannou, Ka yeke, Flamos, Ri-
naldi, Papadelis, Hi schni z-Ga be s and Topi, 2016;
Ga cía-Que edo, Jo e-Llopis and Ma ínez-Ros,
2020) and in some si ua ions hese implemen a-
ions can ha e uni ed o unexpec ed consequences
(Di Fabio, 2020; McLaughlin and Bö ge , 2019). These
ypes o aspec s emain o en unno iced in gene al-
le el c i icisms.
Gene ali y o c i ical discussions is p oblema ic
om he pe spec i e o de elopmen o mo e ambi-
ious ci cula business models. To acili a e a mo e
ocused discussion, we need be e unde s anding
abou he exac unc ioning and impac s o ci cula
business models (Le änen, Uusi alo, Hä i, Ka einen
and Linnanen, 2021). Gaining such unde s anding,
howe e , is challenging because business ac i i ies
ake place in complex socio-ecological sys ems and
hei implica ions do no ealize only in one alue
dimension (Feh e and Wieland, 2021). To na iga e
his complexi y, i is impo an o lea n o analyze
how di e en elemen s o business models in e -
ac and how hey can s eng hen o weaken each
o he in e ms o sus ainable alue c ea ion. While
he ex an esea ch has iden i ied di e en ypes
o ci cula business models (Lewandowski, 2016;
Jou nal o Business Models (2023), Vol. 11, No. 5, pp. 1-24
3
3
Lüdeke-F eund, Gold and Bocken, 2019; U bina i e
al., 2017), he complemen a i y be ween he busi-
ness model elemen s is much less s udied a ea.
This a icle shows how complemen a i y be ween
he business model elemen s can be s udied em-
pi ically. We demons a e how di e en con igu a-
ions o co- unc ional business model elemen s can
acili a e posi i e sus ainabili y- ela ed ou comes
in di e en si ua ions wi hou losing he easibili y
o he business. To ope a ionalize ou esea ch, we
pose he ollowing ques ions: 1) wha ypes o alue
c ea ion elemen s do i ms highligh in hei ci cula
business models? 2) wha ypes o alue c ea ion and
alue p oposi ion elemen s a e complemen a y wi h
each o he ? and 3) wha ypes o alue c ea ion and
alue cap u e elemen s a e complemen a y wi h each
o he ? We use clus e analysis echniques o answe
hese ques ions. Analysis o 92 companies allows
us o explica e co ela ions be ween alue c ea ion,
alue p oposi ion and alue cap u e elemen s o ci -
cula business models. By means o iden i ied co -
ela ions, we explain why complemen a i y be ween
he business model elemen s is impo an and how i
can be u ilized in he u he de elopmen o ci cula
business models.
This a icle is s uc u ed as ollows. In sec ion 2, we
explain he concep ual basis o he business model
complemen a i y phenomenon. A e ha , in sec-
ion 3, we p o ide in o ma ion abou he ma e ials
and me hods o his s udy. In sec ion 4, we p esen
iden i ied linkages be ween he s udied business
model elemen s. Finally, in sec ion 5, we discuss ou
indings and p esen key conclusions om his e-
sea ch.
Business model complemen a i y
Eme ging om he s a egic managemen ield, he
business model app oach (Zo and Ami , 2010) aims
o cap u e he holis ic na u e o business, e lec ing
“s o ies ha explain how en e p ises wo k” (Mag e -
a, 2002: 4) and how i ms c ea e alue (Teece, 2010).
This app oach has u ned ou use ul in esea ch on
how i ms can acili a e business aligned wi h ci cu-
la economy p inciples (Lüdeke-F eund e al., 2019;
Nußholz, 2018; Rizos e al., 2016). The implemen a-
ion o ci cula ea u es ypically equi es signi i-
can changes in business conduc (Bocken, Thijs
and Ge ad s, 2020; Le änen, Pa k and Rosca, 2022)
and business model concep helps o unde s and
how hese ea u es can be a ached o speci ic busi-
ness ac i i ies (Geissdoe e , Pie oni, Pigosso and
Sou ani, 2020; Ran a, Aa ikka-S en oos, Ri ala and
Mäkinen, 2018b). A common way o concep ualize
business model is o p esen i as a combina ion o
alue p oposi ion, alue c ea ion, and alue cap u e
elemen s.
Value p oposi ion o ms he co e o he business
model (Teece, 2010) and ep esen s wha he i m
conside s o be aluable, i.e., he p oposed alue, in
hei o e ing(s) (Payne e al., 2017). The alue p opo-
si ion desc ibes he ype o alue being p oposed,
which is ypically analyzed h ough a lens o alue
dimensions (Pa ala, Jalkala, Ke änen, Väisänen,
Tuominen, Soukka, Jalkala, Ke änen, Väisänen,
Tuominen, Soukka,.,., 2016; Rin amäki, Kuusela and
Mi onen, 2007), such as cus ome alue and so-
cie al alue (Baldassa e, Calab e a, Bocken and
Jaskiewicz, 2017; Boons and Lüdeke-F eund, 2013).
Value c ea ion desc ibes how he alue p oposi ion
is ul illed (Zo , Ami and Massa, 2011). I includes he
ac i i ies ha he i m unde akes h oughou i s
business ac i i ies o “c ea e, p oduce, sell, and de-
li e hei o e ing o cus ome s” (Richa dson, 2008:
139). In his a icle, we ocus speci ically on ac i i ies
ha a e aligned wi h ci cula economy p inciples,
ollowing he s a egies o slowing, closing and na -
owing esou ce loops (Bocken e al., 2016). Finally,
alue cap u e desc ibes he economic incen i e o
he i m o pe o m he business model, highligh -
ing how e enue is gene a ed in a p o i able manne
(Johnson, Ch is ensen and Kage mann, 2008).
In concep ual e ms, his a icle ocuses on busi-
ness model complemen a i y. Complemen a i y has
concep ual oo s in he ield o physics, and since
ha i has been applied especially in economics, bu
g owingly also in business and managemen s udies
(Tu ne , 2022). In hese ields, business model com-
plemen a i y is mainly discussed as a business bene i
gained h ough success ul o mula ion o ac i i ies
inside a speci ic business model elemen (Teece,
Jou nal o Business Models (2023), Vol. 11, No. 5, pp. 1-24
4
4
2018), be ween di e en business models (Bu gelman,
Snihu and Thomas, 2022; Snihu , Thomas and Bu gel-
man, 2022) o wi hin a ne wo k o mul iple ac o s
(Aa ikka-S en oos and Ri ala, 2017; Xu, Kemppainen,
Ahokangas and Pikka ainen, 2020). Complemen a i y
has also been seen as a possible ou come o collabo-
a i e e o s a ound inno a ion de elopmen (Ballo ,
Kemppainen, Ahokangas and Pikka ainen, 2015).
An app oach whe e complemen a i y is unde s ood
as an in e play be ween he business model ele-
men s (Ri e and Le l, 2018) has gained less a en-
ion han o he abo e-men ioned pe spec i es on
complemen a i y. In his a icle, we make a poin
ha assessmen o he complemen a i y ac oss al-
ue p oposi ion, alue c ea ion and alue cap u e ele-
men s should be conside ed as a e y impo an pa
in he analysis and de elopmen o ci cula business
models. Fo example, ce ain alue cap u e ele-
men s may enable u iliza ion o ce ain alue c ea-
ion elemen s and hus de e mine he iabili y o he
en i e business model. By di ec ing analy ical ocus
in o he in e ac ion be ween he business model ele-
men s, we can lea n how di e en ypes o elemen s
can suppo each o he in di e en ields, con ex s,
and si ua ions (Le änen, Lyy inen and Ga ica, 2018).
Ma e ials and me hods
We u ilized a mixed me hods app oach combining
quali a i e and quan i a i e con en analyses o se-
lec ed i ms’ business models. Selec ed companies
ha e been p o-ac i e in he in eg a ion o ci cula
ea u es in o hei business models. S udied com-
panies ha e been accep ed o he “Lis o mos in-
e es ing companies in ci cula economy”, which is
a p og am o ganized by he Finnish inno a ion und
Si a – he majo acili a o o he ci cula economy in
Finland (see A ponen, G anskog, Pan sa , S uch ey,
Tö mänen, Van hou nou , 2015).
Da a
We u ilized a da abase o 92 i ms engaging in di-
e se ci cula ac i i ies. The da a is based on in e -
iews o i m ep esen a i es by Si a’s pe sonnel
du ing hei ci cula economy acili a ion ac i i ies
du ing he pe iod om 2016 o 2019. Based on he
in e iews, he eam compiled desc ip ions o each
company’s business model and i s connec ions o
he p inciples o ci cula economy. The business
model desc ip ions made by Si a include a ac
shee abou he company and in o ma ion abou he
sus ainabili y p oblem he i m a emp s o mi iga e.
These documen s also include ela i ely de ailed in-
o ma ion abou he i m’s solu ion ( alue c ea ion
elemen ), he i m’s e enue model ( alue cap u e el-
emen ), and he bene i s o hei cus ome s and he
socie y a la ge ( alue p oposi ion elemen ). Basic
in o ma ion abou he i ms whose business models
we s udied is p esen ed as Appendix A, and in he
o hcoming sec ions we e e o speci ic i ms wi h
hei eal names. While he s udied business model
desc ip ions a e s a ic in na u e and allow o less
dep h han deepe case s udies wi h mul iple in-
o man s pe case, he ad an age o using his ype
o da ase is ha i enables a ela i ely b oad com-
pa a i e s udy.
Me hodology
Ou da a analysis p ocess was comp ised o i e
dis inc s eps. Fi s ly, we chose a andom sample
o he cases (n=30) ha was analyzed sepa a ely by
all h ee au ho s. Quali a i e coding was pe o med
o he desc ip ions o he s udied business models,
linking po ions o ex o di e en business model
elemen s. The NVi o 10 so wa e was u ilized o he
analysis. In his s age, we used key business model
elemen s iden i ied in he li e a u e ( alue c ea ion,
alue cap u e and alue p oposi ion o bo h cus om-
e s and socie y) as i s -le el codes. Wi hin hese
ca ego ies, open-ended, eme gen coding was pe -
o med, iden i ying sub-ca ego ies unde each busi-
ness model elemen as second-le el codes. In he
case o alue c ea ion, analysis also included iden i-
ica ion o hi d-le el codes. This ini ial coding p o-
cess can be desc ibed as abduc i e in na u e (Dubois
and Gadde, 2002).
In he second s age, he coding ames gene a ed
by he h ee au ho s we e compa ed and analyzed
o simila i ies and di e ences. A his s age,
each code ha was no p esen in all h ee cod-
ing schemes a any le el was discussed sepa a ely.
Codes ha could be me ged due o s ong simila -
i y we e also iden i ied.
Jou nal o Business Models (2023), Vol. 11, No. 5, pp. 1-24
5
5
In he hi d s age, he emainde o he cases (n=62)
was coded by spli ing he sample be ween he
h ee au ho s. In his s age, he ag eed upon cod-
ing scheme was u ilized deduc i ely. Two addi ion-
al second-le el codes eme ged du ing his s age,
which we e hen sha ed among he h ee esea ch-
e s so ha ins ances o he code could also be ana-
lyzed in all h ee samples. This s age was concluded
by compiling all he codings unde a single NVi o
p ojec .
In he ou h s age, NVi o’s quan i a i e analysis
ools we e used o pe o m a clus e analysis on he
coded cases. Codes we e clus e ed acco ding o he
numbe o hei co-occu ences ac oss he cases
(n=92). Each occu ence was ep esen ed by he
p esence o a pa icula coding wi hin a single case
a he han he leng h o coded ex . This no malizes
o he leng h o codings, as he e was some he e o-
genei y in he desc ip ions and hei ela i e empha-
sis on he di e en business mode elemen s. The
So ensen-Dice co-e icien was used as he basis o
he clus e analysis, which is a commonly employed
measu e o analyzing he simila i y o da ase s in
a lexical analysis (Manning and Schü ze, 1999). I is
calcula ed by di iding he numbe o sha ed occu -
ences in wo da ase s mul iplied by wo and di ided
by he o al numbe o occu ences. This analysis
p o ided a ma ix o co ela ion sco es be ween
each code. Based on his, he mos equen ly co-
occu ing business model elemen s we e iden i ied
and anked based on he So ensen-Dice co-e icien
be ween hem.
Finally, in he i h s age, based on he mos dis-
inc co-occu ences o ci cula business model
elemen s, he case desc ip ions we e e iewed o
iden i y illus a i e cases o each co-occu ence.
The con igu a ions we e g ouped based on he main
alue c ea ion ype (second-le el code), and he
mos commonly occu ing o he business model el-
emen s ( alue cap u e and cus ome /socie al alue
p oposi ion) a e lis ed wi h each alue c ea ion ype.
Many o he s udied business models combined di -
e en ways o ci cula alue c ea ion, and he e o e,
we also iden i ied majo co-occu ing alue c ea ion
ypes.
Resul s
In his sec ion we desc ibe ou indings conce ning
he complemen a i y be ween he business model
elemen s. Table 1 summa izes he ci cula business
model elemen s ha we ha e iden i ied. Below we
anlyze he dynamics be ween hese elemen s.
Iden i ied alue c ea ion elemen s
We begin by answe ing o ou i s esea ch ques-
ion: wha ypes o alue c ea ion elemen s do i ms
highligh in hei ci cula business models? Fi e sec-
ond-le el codes o ci cula economy- ela ed alue
c ea ion elemen s occu ing in he cases we e iden-
i ied: 1) asse o esou ce op imiza ion, 2) p oduc
as a se ice, 3) eplacemen , 4) selling used p od-
uc s, and 5) was e o alue. This di ision o alue
c ea ion elemen s ep esen s a ypology a he han
a axonomy because many cases combined mul iple
ypes o ac i i ies. In Figu e 1 we illus a e iden i ied
alue c ea ion elemen s and hei sub-ca ego ies,
which we e iden i ied as hi d-le el codes.
The asse o esou ce op imiza ion consis s o
h ee sub-ca ego ies. In many cases, op imiza ion
o an asse o a esou ce was acili a ed h ough an
asse sha ing ma ke place, whe e he i m ga e cus-
ome s an oppo uni y o sha e hei unde u ilized
esou ces wi h pee s, acili a ing he op imiza ion
o alue c ea ion po en ial o an asse o cus ome s.
In consul a ion o ins alla ion se ices, he i ms ely
on hei expe ise o speci ic cus ome p ocesses
and p o ide cus ome s wi h se ices ha help hem
o op imize he inpu s and ou pu s o a ce ain cus-
ome p ocess o need. These o en coincided wi h
sma moni o ing se ices, which enable cus ome s
o he s udied i ms o make da a-d i en decisions
abou he p ocesses.
The p oduc as a se ice consis s o wo sub-ca e-
go ies ha e ol e a ound u ning he exchange o a
p oduc in o a se ice-like expe ience, namely long-
e m se ices and sho - e m en als. In long- e m
se ices, cus ome s acqui e p oduc s ha hey con-
sis en ly use as a se ice and in p ac ice ou sou ce
he handling o he p oduc o he supplie while
always main aining he a ailabili y o he p oduc .
In sho - e m en als, cus ome s do no ha e he
need o he p oduc s consis en ly and hus en he
Jou nal o Business Models (2023), Vol. 11, No. 5, pp. 1-24
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Table 1.
Value c ea ion
elemen s
Value p oposi ion elemen s
Value cap u e
elemen s
Socie al alue
p oposi ion
Cus ome alue
p oposi ion
Asse o esou ce
op imiza ion
Reduced pollu ion Inc eased e enue Pe iodic paymen s
P oduc as a se ice Reduced esou ce use Cos sa ings T ansac ion ees
Replacemen En i onmen al
imp o emen s
Time sa ings Pay-pe -use
Selling used p od-
uc s
Heal h bene i s Risk educ ion P oduc sales
Was e o alue Ex ended p oduc li e
cycle
Con enience Licensing
Reduced was e Func ional alue Was e managemen ees
B and bene i s
Table 1. Ci cula business model elemen s.
11
B and bene i s
Table 1. Ci cula business model elemen s.
4.1 Iden i ied alue c ea ion elemen s
We begin by answe ing o ou i s esea ch ques ion: wha ypes o alue c ea ion elemen s do
i ms highligh in hei ci cula business models? Fi e second-le el codes o ci cula economy-
ela ed alue c ea ion elemen s occu ing in he cases we e iden i ied: 1) asse o esou ce
op imiza ion, 2) p oduc as a se ice, 3) eplacemen , 4) selling used p oduc s, and 5)
was e o alue. This di ision o alue c ea ion elemen s ep esen s a ypology a he han a
axonomy because many cases combined mul iple ypes o ac i i ies. In Figu e 1 we illus a e
iden i ied alue c ea ion elemen s and hei sub-ca ego ies, which we e iden i ied as hi d-le el
codes.
Figu e 1. Value c ea ion elemen s o he s udied ci cula business models.
The asse o esou ce op imiza ion consis s o h ee sub-ca ego ies. In many cases,
op imiza ion o an asse o a esou ce was acili a ed h ough an asse sha ing ma ke place,
whe e he i m ga e cus ome s an oppo uni y o sha e hei unde u ilized esou ces wi h pee s,
acili a ing he op imiza ion o alue c ea ion po en ial o an asse o cus ome s. In
consul a ion o ins alla ion se ices, he i ms ely on hei expe ise o speci ic cus ome
Figu e 1. Value c ea ion elemen s o he s udied ci cula business models.
Jou nal o Business Models (2023), Vol. 11, No. 5, pp. 1-24
7
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p oduc s when needed. As he unde lying logic, bo h
ac i i ies change he cus ome s expenses om
capi al expenses o ope a ional expenses.
The eplacemen consis s o h ee sub-ca ego ies
desc ibing al e na i e solu ions o eplace exis ing
solu ions in he ma ke place. When eplacing wi h
ecycled solu ions, i ms engage in ecycling ma e-
ials o p o iding p oduc s om ecycled ma e ials
and o e ing hem as subs i u es o non- ecycled
p oduc s. When eplacing wi h enewable solu ions,
i ms o e o cus ome s p oduc s ha a e c ea ed
om enewable sou ces, o example by eplacing
plas ic p oduc s wi h wood-based p oduc s. Fo he
hi d op ion, eplacing wi h gene ally mo e sus ain-
able solu ions, a i m’s ac i i y was no necessa -
ily di ec ly ocused on he ma e ial o he p oduc
bu a he on he sys emic sus ainabili y e ec o
i , such as in he case o eplacing mea wi h plan -
based al e na i es.
The selling used p oduc s consis s o wo sub-
ca ego ies ha enable cus ome s o choose used
p oduc s a he han new p oduc s. In i ms buying,
es o ing, and selling p oduc s, he ocal i m engag-
es in he acquisi ion and p ocessing o used p oduc s
a scale and o en e u bishes and emanu ac u es
p oduc s ha migh o he wise be no longe usable.
In pee - o-pee secondhand ma ke places, i ms
ake a mo e dis an ole in he physical exchange o
he p oduc and ocus on connec ing he supply and
demand. In some o hese cases, he i m handles
sho - e m s o age and he deli e y o he p oduc
be ween pee s, while in o he cases, he i m ne e
ouches he physical p oduc and only acili a es he
connec ion and communica ion be ween pee s.
The was e o alue consis s o ou sub-ca ego ies
ha all u n was e ma e ials in o aluable esou ces
in di e en ways. Th ee ac i i ies a e di ec ly e-
la ed o ecycling, namely echnology o ecycling,
ecycled ma e ials om was e and p oduc s om e-
cycled ma e ials. These a e all connec ed and o m
a alue chain o u ning was e back in o p oduc s.
Howe e , because hese ac i i ies a e pe o med in
sepa a e business models based on he case da a
analyzed, hey eme ged as sepa a e codes du -
ing he da a analysis. The ou h ac i i y, was e o
ene gy, is mo e dis inc one as i is ocused on ex-
ac ing alue om ma e ials ha leak om he ci -
cula sys em. Bio uel ope a o s ex ac ing uel om
biowas e a e examples o his ype o ac i i y.
Iden i ied links be ween alue c ea ion and alue
p oposi ion elemen s
Nex , we answe o ou second esea ch ques ion:
wha ypes o alue c ea ion and alue p oposi ion
elemen s a e complemen a y wi h each o he ? A -
e iden i ica ion o di e en alue c ea ion ele-
men s, we mo ed o wa d o analyze di e en o ms
o cus ome and socie al alue p oposi ions ha he
s udied companies p o ide. Figu e 2 illus a es co-
occu ing socie al and cus ome alue p oposi ions
in ela ion speci ic alue c ea ion elemen s, implying
s ong (0,39<co-occu ence), in e media e (0,25<co-
occu ence) and low (0,10<co-occu ence) co ela ion
be ween he business model elemen s. De ailed co-
occu ence alues a e p esen ed in Appendix B. Nex ,
we will in oduce he de ails o co ela ing alue c ea-
ion and alue p oposi ion elemen s.
Asse o esou ce op imiza ion mos equen ly co-
occu ed wi h educed pollu ion, educed esou ce
use, and imp o emen o he en i onmen in e ms
o socie al alue p oposi ions. Fo example, Lease-
G een, a i m ha p o ides se ices o imp o ing
he ene gy e iciency o buildings, highligh s ha i
had educed wi h i s p ojec “a ound 120,000 ons
o CO2 o e hei li e cycles.” In ela ion o cus ome
alue, asse o esou ce op imiza ion was p oposed
o lead o inc eased e enue, cos sa ings, and ime
sa ings. Thus, he cus ome alue p oposi ions we e
p oposing hea ily lean owa ds qui e adi ional al-
ue pe spec i es.
In p oduc as a se ice, he mos equen ly co-
occu ing socie al alue p oposi ions we e educed
esou ce use, heal h bene i s, and ex ended p oduc
li e cycle. Thus, a social dimension o alue om he
iple bo om line app oach can be iden i ied in his
ype o alue c ea ion ac i i ies. O en, he i ms o
his ype we e linked o anspo a ion se ices and
p oposed ha hei se ices could make cus ome s
mo e engaged in physical exe cise by op ing o se -
ice-based anspo a ion a he han use o p i a e
ca s. The mos equen ly co-occu ing cus ome
Jou nal o Business Models (2023), Vol. 11, No. 5, pp. 1-24
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alue p oposi ions we e isk educ ion, con enience,
and unc ional alue, indica ing ha i ms in ol ed in
hese ac i i ies a e p ima ily no ocused on di ec ly
measu able economic bene i s o he cus ome bu
a he on p o iding con enien se ices ha he
cus ome s can easily swi ch o. Fo example, Lind-
s öm p o ides wo k clo hes as a se ice and high-
ligh s in hei alue p oposi ion ha “cus ome s ha e
easy access o clean, se iced, sa e clo hes ha
mee he equi ed quali y s anda ds.”
In eplacemen , educed pollu ion, educed was e, and
educed esou ce use co-occu ed mos equen ly as
socie al alue p oposi ions. Fo example, C ossLam,
a company eplacing conc e e elemen s wi h wooden
elemen s in cons uc ion indus y, s a es ha “ a-
di ional conc e e cons uc ion p oduces plen y o
ca bon dioxide emissions and consumes a lo o en-
e gy and esou ces” as opposed o wooden elemen s,
which “commi ca bon o buildings and educe a -
mosphe ic emissions.” In ela ion o cus ome alue,
hese ypes o alue c ea ion elemen s co-occu ed
mos equen ly wi h unc ional alue, cos sa ings,
and b and bene i s, which indica es ha hey ely on
cus ome s who a e no expec ed o make decisions
solely based on economic alue.
In selling used p oduc s, ex ended p oduc li e,
educed was e, and educed esou ce use we e,
pe haps no su p isingly, he mos equen ly co-
occu ing socie al alue p oposi ions. In e ms o
cus ome alue, isk educ ion, inc eased e enue,
and cos sa ings occu ed mos equen ly, all ep-
esen ing economically o ien ed alue dimensions,
which is an in e es ing inding in compa ison o ac-
i i ies associa ed wi h eplacemen .
In was e o alue, he mos o en co-occu ing soci-
e al alue p oposi ions we e educed was e, educed
pollu ion, and educed esou ce use, whe eas, b and
bene i s, cos sa ings, and unc ional alue we e
he mos equen ly co-occu ing cus ome alue
dimensions. While inc eased ecycling is he mos
adi ional way o imp o e he ci cula i y o ma e-
ials, ou indings indica e ha ecycling ypes o
business ac i i ies do no only con o m o adi ional
economic alue because b and bene i s implica e
alue eme ging om a pe cep ion o sus ainabili y.
Fo example, Fo um, which p oduces plas ic p od-
uc s om was e plas ics, s a es in i s alue p oposi-
ion ha “by p oducing a p oduc wi h a lowe ca bon
oo p in , he cus ome imp o es hei b and and
public image.”
14
Figu e 2. Co ela ing alue c ea ion and alue p oposi ion elemen s.
Asse o esou ce op imiza ion mos equen ly co-occu ed wi h educed pollu ion, educed
esou ce use, and imp o emen o he en i onmen in e ms o socie al alue p oposi ions. Fo
example, LeaseG een, a i m ha p o ides se ices o imp o ing he ene gy e iciency o
buildings, highligh s ha i had educed wi h i s p ojec “a ound 120,000 ons o CO2 o e hei
li e cycles.” In ela ion o cus ome alue, asse o esou ce op imiza ion was p oposed o
lead o inc eased e enue, cos sa ings, and ime sa ings. Thus, he cus ome alue
p oposi ions we e p oposing hea ily lean owa ds qui e adi ional alue pe spec i es.
In p oduc as a se ice, he mos equen ly co-occu ing socie al alue p oposi ions we e
educed esou ce use, heal h bene i s, and ex ended p oduc li e cycle. Thus, a social dimension
o alue om he iple bo om line app oach can be iden i ied in his ype o alue c ea ion
ac i i ies. O en, he i ms o his ype we e linked o anspo a ion se ices and p oposed ha
hei se ices could make cus ome s mo e engaged in physical exe cise by op ing o se ice-
based anspo a ion a he han use o p i a e ca s. The mos equen ly co-occu ing cus ome
alue p oposi ions we e isk educ ion, con enience, and unc ional alue, indica ing ha i ms
Figu e 2. Co ela ing alue c ea ion and alue p oposi ion elemen s.
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Appendix A. Basic in o ma ion abou he i ms whose ci cula economy busi-
ness models we e s udied
Fi m Name Main business Es ablished Employees
3S epI IT equipmen managemen 1997 > 250
24Ren Ca sha ing 2011 1 - 10
Ame plas Plas ics 1952 > 250
Aquazone Was e-wa e ea men 2009 1 - 10
A c ic Bioma e ials Bio-based plas ics 2014 10 - 250
Be ulium Bio echnology 2013 1 - 10
BioGTS Bioene gy 2011 10 - 250
C isol eq Indus ial was e p ocessing 2005 10 - 250
C ossLam Cons uc ion ma e ials 2014 10 - 250
Des aclean Recycled cons uc ion ma e ials 1998 10 - 250
OP D i eNow Finance, Ca sha ing 1902 > 250
Du a In e io design p oduc s 1990 10 - 250
Ecolan O ganic Fe ilise s 1995 10 - 250
Eko-expe Recycled cons uc ion ma e ials 1990 10 - 250
EkoRen Ca sha ing 2014 1 - 10
Jou nal o Business Models (2023), Vol. 11, No. 5, pp. 1-24
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Fi m Name Main business Es ablished Employees
Ekox IT equipmen managemen 2015 10 - 250
Emmy Second Hand Second hand clo hes 2015 10 - 250
Ene o Sma was e managemen 2010 10 - 250
En ocube Insec a ming echnology 2014 1 - 10
eRENT Equipmen sha ing pla o m 2015 1 - 10
Fescon Ma e ials 1984 10 - 250
Finlayson Tex iles 1820 10 - 250
Finsec Insec a ming 2015 1 - 10
Fluid In elligence Indus ial main enance 2016 1 - 10
Fo um T ea men o haza dous was e 1971 > 250
Gasum Na u al gas, biogas and LNG 1994 > 250
Globe Hope Tex iles 2001 10 - 250
Gold&G een Food 2015 10 - 250
Helsieni U ban a ming 2016 1 - 10
In ini ed Fibe Tex ile p oduc ion echnology 2015 1 - 10
Inno en Mo able acili ies 2016 1 - 10
Jou nal o Business Models (2023), Vol. 11, No. 5, pp. 1-24
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19
Fi m Name Main business Es ablished Employees
Ja ma Chemical p oduc s 2000 1 - 10
Kekkilä O ganic Fe ilise s 1924 10 - 250
Pääkaupunkiseudun kie -
ä yskeskus Sales o second hand p oduc s 1990 > 250
Konec anes C anes and li ing equipmen 1994 > 250
Ko kamills Pape and ca dboa d p oduc s 1990 > 250
LeaseG een HVAC sys ems 2013 10 - 250
LemKem Ligh ing equipmen 1985 10 - 250
Linds öm Tex ile en al 1848 > 250
Lo ia Tex iles 2014 1 - 10
Lassila & Tikanoja Was e managemen , ecycling 1905 > 250
ResQ Club Pla o m o selling su plus ood 2015 10 - 250
Maapö ssi Se ice o sales o su plus exca a-
ion ma e ial 2006 1 - 10
MaaS Global Mobili y as a se ice 2015 10 - 250
Ma ela O ice u ni u e 1945 > 250
Me ene Biomass ea men echnology 2001 1 - 10
Jou nal o Business Models (2023), Vol. 11, No. 5, pp. 1-24
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Fi m Name Main business Es ablished Employees
Naa a In elligen in e io g een walls 2011 10 - 250
Nes e Oil and enewable uels 1948 > 250
Ne lea Online second-hand e ail 2014 1 - 10
Ne led Ve ical a ming solu ions 2007 1 - 10
Ne ix Equipmen sha ing pla o m 2000 10 - 250
No a bo Ve ical a ming solu ions 2010 10 - 250
Palpa Deposi -based bo le e u n sys em 1996 10 - 250
Pap ic Bio-based packaging ma e ials 2015 10 - 250
Pa-Ri Ma e ia Sales o used o ice u ni u e 1997 10 - 250
Ponsse Fo es machine y 1970 > 250
Pu e Was e Tex iles 2013 1 - 10
Raisioag o Ag icul u al eed p oduc s 1948 10 - 250
Rakeis us Recycled e ilise 2012 1 - 10
Remake Tex iles 2007 1 - 10
Ren -a-Pa k Pa king se ices 2013 1 - 10
RePack Reusable packaging 2011 1 - 10
Jou nal o Business Models (2023), Vol. 11, No. 5, pp. 1-24
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Fi m Name Main business Es ablished Employees
Robbes Sma g eenhouses 2001 10 - 250
Sha eI Blox Ca Ca sha ing 2015 1 - 10
Sha e ibe Pla o m o second hand p oduc
sales and en als 2011 10 - 250
Silmusalaa i Food 2012 1 - 10
Skippe i Equipmen sha ing pla o m 2016 1 - 10
Soil ood Recycled nu ien s and e ilise s 2015 10 - 250
Solne Sola powe sys ems 2014 1 - 10
Spinno a Tex iles 2014 1 - 10
SR Ha es ing Recycled spa e pa s 2010 10 - 250
S 1 Oil and enewable uels 1997 > 250
Sulapac Biodeg adable packaging 2016 1 - 10
Suomen Sa upiippu eol-
lisuus Recycled cons uc ion ma e ials 2016 1 - 10
Swap Online second-hand e ail 2012 > 250
Swappie Re u bished phones 2015 1 - 10
Tai one i Re u bished compu e s 2005 10 - 250
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Fi m Name Main business Es ablished Employees
Tam u bo Indus ial ai comp esso s 2010 10 - 250
Ta pape Recycled ma e ials 2013 1 - 10
To i Online second-hand e ail 2009 10 - 250
TouchPoin Tex iles 2008 1 - 10
T aceg ow Recycled e ilise s 2012 1 - 10
UPM Ra la ac Adhesi e lamina es, biocomposi es 1975 > 250
Val a alo Ligh ing ins alla ions and p oduc s 2008 10 - 250
Val a Ag icul u al machine y 1990 10 - 250
Wa ec Indus ial biogas plan s 2003 10 - 250
Venuu Ma ke place o en ing enues 2013 10 - 250
Ve hoilijames a i Fu ni u e uphols e ing N/A 1 - 10
Ve soFood Food 2010 1 - 10
Wimao Biocomposi es 2015 1 - 10
Zadaa Online second-hand e ail 2015 1 - 10
Zen obo ics Was e-so ing echnology 2007 10 - 250
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Appendix B. Co-occu ences be ween alue c ea ion, alue p oposi ion and
alue cap u e elemen s.
Socie al alue p oposi ion
elemen s
Cus ome alue
p oposi ion elemen s Value cap u e elemen s
Asse o esou ce
op imiza ion
(n=20)
•Reduced pollu ion (0,4)
•Reduced esou ce use
(0,34)
•En i onmen al imp o e-
men s (0,25)
•Inc eased e enue
(0,4)
•Cos sa ings (0,38)
•Time sa ings (0,27)
•Pe iodic paymen s
(0,39)
•T ansac ion ees
(0,35)
P oduc s as a
se ice (n=11)
•Reduced esou ce use
(0,28)
•Heal h bene i s (0,22)
•Ex ended p oduc li e
(0,15)
•Risk educ ion (0,33)
•Con enience (0,32)
•Func ional alue
(0,24)
•Pe iodic paymen s
(0,27)
•Pay-pe -use (0,27)
Selling used
p oduc s (n=15)
•Ex ended p oduc li e
(0,4)
•Reduced was e (0,3)
•Reduced esou ce use
(0,22)
•Risk educ ion (0,41)
•Inc eased e enue
(0,4)
•Cos sa ings (0,35)
•T ansac ion ees (0,41)
•P oduc sales (0,23)
Replacemen
(n=24)
•Reduced pollu ion (0,5)
•Reduced was e (0,3)
•Reduced esou ce use
(0,29)
•Func ional alue
(0,36)
•Cos sa ings (0,34)
•B and bene i s (0,29)
•P oduc sales (0,48)
•Licensing (0,36)
Was e o alue
(n=34)
•Reduced was e (0,67)
•Reduced pollu ion (0,35)
•Reduced esou ce use
(0,27)
•B and bene i s (0,47)
•Cos sa ings (0,47)
•Func ional alue
(0,28)
•P oduc sales (0,65)
•Was e managemen
ees (0,26)
Jou nal o Business Models (2023), Vol. 11, No. 5, pp. 1-24
24
24
Appendix C. Co-occu ing alue c ea ion ypes and hei So ensen’s
co-e icien s.
Value c ea ion
elemen s
Co-occu ing
alue c ea ion elemen s
Asse o esou ce op imiza ion • eplacemen (0,18)
•was e o alue (0,11)
•p oduc s as se ices (0,06)
•selling used p oduc s (0,06)
P oduc s as se ices •asse o esou ce op imiza ion (0,06)
Selling used p oduc s •asse o esou ce op imiza ion (0,06)
• eplacemen (0,05)
Replacemen •asse o esou ce op imiza ion (0,18)
•was e o alue (0,14)
•selling used p oduc s (0,05)
Was e o alue • eplacemen (0,14)
•asse o esou ce op imiza ion (0,11)
