Work

How to Navigate Disrupted Business Models in the 21st Century: At the Crossroads of the Circular Economy and the Industry 4.0 Transition

Year: 2026

Type: article

Abstract: ABSTRACT Our planet faces a critical crisis, with pollution, resource depletion and biodiversity loss surpassing sustainable limits. Businesses must address these challenges, with the circular economy and Industry 4.0 offering transformative potential through closed‐loop systems, regenerative solutions and advanced technologies. However, their integration introduces theoretical tensions and challenges for business model transitions. Grounded in business model literature, we explore how businesses adopt circular economy principles and Industry 4.0 technologies, analysing six influential case studies from Europe and Australia, along with expert insights. We propose a theoretical framework with two value retention lenses: Lens 1 , which views resources as costs , and Lens 2 , which sees resources as value . These lenses highlight why we see paradoxical outcomes at the intersection of circular economy and Industry 4.0. Our study contributes to business model literature by offering a dual‐lens approach that reveals distinct implementations and outcomes driven by varying value retention. It explains that the tensions between circular principles and Industry 4.0 are due to the agnostic nature of technologies and the business's strategic orientation. We advocate for co‐developing institutional and cost‐based approaches and expanding policy scope to address planetary boundaries beyond material‐focused, restricted interpretations of the circular economy.

Source: Business Strategy and the Environment

DOI: 10.1002/bse.70592

Authors: Agnes Toth‐Peter, Rui Torres de Oliveira, Shane Mathews, Leonie Barner

Institutions: Queensland University of Technology, The University of Queensland, ARC Centre of Excellence in Synthetic Biology, Deakin University

Language: English

Topic: Sustainable Supply Chain Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Responsible consumption and production

Open Access status: hybrid

Estimated APC paid: $4,480