A circular business cluster model for sustainable operations management

Abstract

Ecological pollution scarcity of resources climate change and population growth have forced organisations to transform from a linear to a circular economy. Hence the need arises to redesign value chains and traditional business models. Thus the aim of this study is to develop a new conceptual eco-cluster model called 'Circular Business Cluster Model' to combine the advantages of both clustering and a circular economy. This paper seeks to establish a framework and provide guidelines for policy-makers such as governments local authorities and organised industrial zone administrators. The contribution of this paper is to highlight and emphasise the crucial role of circular economy principles to transform a classical business model into an eco-business model. Circular Business Cluster Model includes the conceptual framework network structure interactions between cluster components and 6R activities. A case study was conducted to check the applicability of the proposed Circular Business Cluster Model. Eleven centres in this model were evaluated. Fuzzy Best-Worst Method (BWM) was used to find the relative weights. Based on the Circular Business Cluster Model theoretical and managerial implications have been presented.