CIRCULAR BUSINESS MODEL: THEORETICAL OVERVIEW AND TRANSFORMATION SOLUTIONS TOWARDS SUSTAINABLE DEVELOPMENT

Abstract

The circular economy is regarded as a viable alternative to the linear economy, aiming to reduce waste, mitigate resource depletion, and minimize
environmental pollution. It is considered a promising solution for sustainable development. Successfully implementing this model requires innovative business
approaches that enhance resource efficiency, extend product lifecycles, promote recycling and reuse, and minimize environmental impact. While circular
business models have been explored in various studies, existing information remains fragmented and lacks clarity, posing challenges for practical application in
businesses. To address this issue, this paper provides a comprehensive overview and systematizes the theoretical framework of circular business models. It
synthesizes key insights on: (1) the differences between conventional and circular business models, (2) solutions for transitioning to a circular business model,
(3) strategies for adopting circular business practices, (4) different types of circular business models, and (5) the implementation of circular business models by
enterprises in Vietnam.