Drivers and barriers for circular business model innovation

Abstract The circular economy concept is gaining traction in academia, industry and policymaking as a strategy to reduce resource depletion, waste emissions. Many authors see business model innovation critical lever for the concept's implementation on organisational level. Despite importance of topic, drivers barriers different types remain unclear. We address this gap by comparing four generic types: start‐up, diversification, transformation acquisition. Relying structured comparative literature review using cross‐reference searches, we develop theoretical framework that apply multi‐case study 21 organisations covering three types, with some additional insights fourth. identify 25 10 drivers, clustered into seven categories, outline how they distinctively affect types. Start‐ups diversifications are more commonly driven market financial factors, while transformations led factors. These highly affected legal barriers; however, start‐ups prone face value chain challenges, incumbents susceptible barriers. Our provides novel empirical data validate complement previous research offers an analysis perspective transition towards sustainable economy.