Risks in circular business models innovation: A cross-industrial case study for composite materials

Circular business models (CBMs) are key enablers to implement circular economy (CE), yet they entail risks, which often discourage organisations. This work aims to explore the main risk factors perceived by the manufacturing industry in transitioning to CBMs to enable the development of appropriate risk management strategies. A cross- industrial multiple-case study research design was used to explore risk factors across seven organisations planning the transition to CBMs for composite-based products and involving three different CBM types—‘Circular Supplies’, ‘Product Life Extension’ and ‘Hybrid’. Results evidenced that risks are multi-disciplinary but are not equally per- ceived across different CBM types. Customers' perceptions of CE products, economic cycle and take-back systems were prevalent across all CBMs. Supply and technological risks were prioritised for ‘Circular Supplies’ CBM, whereas political and regulatory risks for ‘Product Life Extension’ CBM. This research contributes to the CE field by evaluating and prioritising the perceived risk factors in transitioning to CBMs and first disaggregating such risk factors according to CBM types. Critical risk patterns identified across different industries and CBM types enable mitigating actions to be prioritised.