Purpose: This study explores circular business models from the perspective of distributors, focusing on how they can create, deliver, and capture value within circular supply chains. Method: This study is an exploratory case study of a leading Nordic distributor. Qualitative data were gathered through 36 interviews conducted in three phases with the distributor, six customers, and six suppliers. Thematic analysis was utilized to analyze the data. Findings: The results indicates that there are multiple activities distributors can conduct to create, deliver, and capture value in a circular business model. Distributors can create value through these activities: create awareness, curate and develop products, ensure compliance with legislation and coordinate partnerships. Distributors can deliver value by manage transportation, manage warehouse logistics, provide reused, refurbished, and repaired products, provide rental and leasing models, offer service agreements, and recycle products and materials. Distributors can capture value by evaluate investments and costs, create pricing strategies, implement additional revenue streams, and manage warranties. Managerial implications: The result of this thesis concretizes activities that distributors can incorporate within a CBM regarding circular value creation, circular value delivery and circular value capture. The activities are either categorized as unique for distributors or activities that can be managed either by distributors or other parties such as suppliers, customers, or a third party. Distributors should execute activities unique for distributors within a CBM to contribute to a CSC. Furthermore, distributors can execute activities that are not unique for distributors when applicable and determined favorable for their CBM. Additionally, the listed activities concern different departments at distributors including sustainability, sales, purchasing, logistics, and management. The different departments should bear responsibility for their respective activities. Theoretical contribution: This study contributes to previously unexplored area within circular business models from the distributor perspective. First, it addresses the pivotal role of distributors in fostering collaboration within the circular supply chain, demonstrating how distributors are not just participants but enablers of the flow of goods, information, and money. Distributors can manage their own CBM or contribute to another party’s CBM. Secondly, it broadens the current understanding of value creation and value delivery in a circular business model. Our findings regarding circular value creation reveal that educating customers about the benefits of circular products is essential for fostering acceptance and driving circular value creation. Our findings regarding circular value delivery reveal critical and previously underexplored challenges in the logistics processes. Distributors face significant hurdles in handling products as specific units rather than in batches, complicating reverse logistics and exponentially increasing costs. Limitations and future research: The exploratory nature of our study highlights the nascent understanding of CBMs for distributors. Consequently, the results of this study are indicative rather than definitive. Future research can explore diverse company sizes to enhance generalizability. Additionally, deeper investigation into specific mechanisms of value creation, delivery, and capture within circular business models is recommended. Furthermore, the concept of whether distributors should create their own CBM or contribute to another party’s CBM could be further investigated since this a concept we introduced in this thesis. Additionally, further studies could therefore consider a perspective broader range of company sizes and types, of the research. Additionally, another area for future research could involve taking a global perspective, as practices and systems related to circular activities can differ significantly between countries.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:ltu-107471 |
| Date | January 2024 |
| Creators | de Bruin, Jenny, Georgsson, Anna |
| Publisher | Luleå tekniska universitet, Institutionen för ekonomi, teknik, konst och samhälle |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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