Business model development in the circular bioeconomy: A focus on the fashion-textile industry

In recent years, exploring business models (BMs) within the circular bioeconomy (CBE) framework has gained increasing prominence in academic discussions, driving transformation across various industries. This research focuses on the textile-fashion (T-F) industry, a sector with significant environmental impact, to examine how innovative BMs can enhance sustainability. By aligning with circular economy (CE) principles - emphasizing resource efficiency, waste reduction, and sustainable development - and leveraging the pathways of CBE, pathways that prioritize renewable biological resources such as plants, animals, and microorganisms, the study explores the potential of green circular business models (GCBMs). Using a qualitative research approach, we review key studies on BMs to assess their alignment with the CBE vision and identify models suitable for implementation. Additionally, we propose and refine a conceptual managerial model through case study analysis within the T-F industry, offering actionable insights for industry stakeholders. This study contributes to BMs research highlighting a significant role for innovative BMs in driving sustainable practices, particularly through the adoption of green circular business models (GCBMs) that align with the green and circular principles. The findings underscore the role of CBE-aligned BMs in fostering competitive advantage, promoting responsible industry practices, and advancing global sustainability goals. This research provides a practical guide for managers and industry leaders seeking to embed circularity and sustainability into their strategies within the CBE framework. • Contex : The circular bioeconomy (CBE) integrates circular economy (CE) and bioeconomy principles to enhance sustainability. CE minimizes resource use and extends product life cycles, while the bioeconomy utilizes renewable biological resources and biotechnology. Despite their synergy, integration remains underdeveloped, particularly in textiles and fashion (T-F), which face environmental challenges. Innovative business models (BMs) aligning with CBE are essential, with business model innovation (BMI) enabling sustainable value creation. However, implementing green circular business models (GCBMs) is complex due to definitional ambiguities and adoption barriers. This study explores effective GCBM integration in T-F to foster circularity and sustainability. • Literature: Existing literature emphasizes the role of CE and bioeconomy in sustainable industries, yet a unified framework integrating both is lacking. Carus and Dammer (2018) note their shared goals but distinct domains. Research on BMI shows circular and bio-based approaches enhance sustainability (Santa-Maria et al., 2022; Guo et al., 2022), though GCBM implementation in T-F remains underexplored, particularly in economic feasibility and scalability. Scholars highlight the need for deeper theoretical insights on BMI in CBE (Salvador et al., 2023) and the lack of consensus on green business model definitions (Trapp & Kanbach, 2021). This study addresses these gaps by structuring BMI integration within CBE for T-F sustainability. • Contributions - What are the main scholarly and practical contributions of your study? This study advances the understanding of CBE-aligned BMs in promoting sustainability in the T-F industry. It fills a key literature gap on the intersection of CE and bioeconomy, refining the concept of GCBMs and contributing to BMI research by identifyng factors influencing sustainable business adoption. The study also strengthens leadership and change management models within CE transition. Practically, it provides industry leaders and policymakers with actionable strategies for circular and bio-based integration. By proposing a roadmap for circularity, it offers guidance for companies adopting sustainable practices. Additionally, it underscores the role of managerial innovation in fostering environmental and social responsibility, emphasizing collaboration among businesses, governments, and stakeholders. Finally, it enriches academic discussion and several ad a strategic resources for sustainability-driven practitioners.