The authors explain that transitioning from a linear “take-make-dispose” economy to a sustainable system requires new business models that can valorize renewable resource streams currently treated as waste.
The researchers point out that the study aimed to identify the critical success and risk factors for eco-innovative businesses that process unavoidable agricultural waste or by-products. By analyzing 39 cases through interviews and secondary data, the study evaluated various initiatives based on their objectives, resources, and the external and internal factors that influenced them over time.
The study identifies five major categories for these factors: technical and logistic; economic, financial and marketing; organizational and spatial; institutional and legal; and environmental, social and cultural.
Specifically for the agricultural sector, the authors highlight several key elements, such as innovative conversion technologies, flexible logistics, joint R&D investments, and the price competitiveness of bio-based products. They also emphasize the roles of partnerships with research organizations, space availability, subsidies, waste management regulations, and the involvement and acceptance of local stakeholders.
Ultimately, the researchers conclude that shifting to circular agro-food chains requires individual businesses to evolve into more dynamic and integrated models, with the macro-environment setting the necessary boundary conditions for success.
Learn more about this study here: https://doi.org/10.1016/j.resconrec.2020.105236
Reference:
Donner, M., & De Vries, H. (2021). How to innovate business models for a circular bio‐economy? Business Strategy and the Environment, 30(4), 1932–1947.
