Balancing Profit and Purpose in Business Model Innovation: A 6C Analysis of an Emerging Circular Ecosystem

This paper investigates business model innovation within an emerging circular economy ecosystem in the German waste management and recycling industry. Through a case study of three collaborating organizations, we explore the tensions between profit- and purpose-driven objectives, identifying patterns of business model innovation potential that affect ecosystem development. We apply the 6C framework, analysing Context, Cooperation, Construct, Configuration, Capability, and Change dimensions, to examine ecosystem dynamics systematically. Data collection included interviews with seven stakeholders supplemented by organizational documentation. Our findings reveal persistent tensions between sustainability missions and economic imperatives, with economic viability consistently emerging as the decisive factor. We identify three configuration patterns of potential business model innovation and reveal factors that determine their capability to shape ecosystem development. Regulatory pressures, technical complementarity, and government funding emerge as key drivers of the ecosystem, while investment requirements, regulatory inconsistencies, and misalignment in technology readiness constitute significant barriers. This research contributes to circular economy and business model literature by demonstrating how organizations strategically position economic and environmental objectives, while offering practical guidance for companies navigating business model innovation in waste and recycling contexts.