Circular economy business model innovation in community enterprises: A grounded theory study of Gros Michel Banana processing in Thailand

This study developed a circular economy business model innovation (CEBMI) framework for Gros Michel banana processing community enterprises in Thailand. These enterprises have faced challenges from COVID-19 and environmental concerns and require resilient business models that balance economic, social and environmental sustainability. Data were collected through semi-structured interviews with 13 key informants comprising community enterprise members ( n = 7), provincial agricultural officers ( n = 4) and food engineering experts ( n = 2), complemented by focus group discussions with consumers ( n = 8), 40 h of participant observation and document analysis using grounded theory methodology within a constructivist paradigm. The results revealed five interconnected theoretical domains: Business Ecosystem Drivers (policy support, stakeholder collaboration), Sustainability Inputs (organisational vision, resource circulation strategies), Business Model Reconfiguration (across value creation, proposition, delivery and capture dimensions), Innovation Dimensions (technical, organisational and social innovations) and Sustainability Impacts (environmental improvements, social equity and governance benefits). The findings demonstrated that a successful CEBMI framework emerges through collaborative networks rather than isolated enterprise decisions by orchestrating multiple innovation dimensions simultaneously and transforming agricultural waste materials into valuable resources that enhance competitiveness. The resulting CEBMI framework serves as a theoretical contribution to circular economy literature and a practical tool for community enterprise development. This research bridges important gaps in the understanding of how rural agricultural enterprises can implement circular economy principles despite resource constraints, creating models that align with both local economic needs and global sustainability objectives.