Linking Circular Business Models With Value Sources: A Cluster‐Based Literature Review

ABSTRACT Circular Business Models (CBMs) are critical to advancing the Circular Economy (CE), receiving significant attention from policymakers and corporations alike. Despite this, the conceptual clarity of CBMs remains underdeveloped. This paper presents a systematic literature review of CBM, focusing on definitions, drivers, barriers, and value creation. We identify three primary clusters: CBM concept, CBM transformation, and CBM strategies. Key gaps in the literature are highlighted, with particular regard to market value creation, comprehensive business model framework, and firm maturity. To address these gaps, we propose a framework linking CBM strategies with value sources, offering a more cohesive understanding of circularity within business models. This framework aims to guide future research and practical implementation across various firm maturity stages.