Paper separationsblad - Chalmers tekniska högskola

Summary of appended papers
examined. The models investigated provide mixed results for other types of
offer differentiation, suggesting the need for further research.
4.5 Paper V
Title: Examining the challenges of implementing closed-loop service-based
business models from an entrepreneurial perspective
This paper investigates the implementation of a service-based circular
business model – a product-service system based on remanufacturing. The
paper investigates the reasons why firms operating traditional linear business
models are reluctant to shift to service-based circular business models. The
paper is grounded in a longitudinal interventionist project involving a small
Swedish bicycle manufacturer developing a new remanufacturing-based
service offer for a new product category. The paper reviews the
disadvantages of service-based circular business models relative to linear
business models discussed in prior research papers. Paper V suggests that
many of these potential disadvantages can be mitigated in various ways, as
illustrated in the studied case. However, there is an important challenge that
persists. Proactive testing of certain key business model assumptions
requires more time and more capital within a service-based circular business
model context compared to a linear business model context. Since a servicebased
circular business model involves significantly more tied up capital
during stages of high uncertainty, the shift carries significant risk. The
identification and conceptualization of this challenge constitutes the main
contribution of Paper V. Some possible solutions to this problem are
discussed, but are ultimately left as an interesting topic for future research.
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