CHALLENGES OF TRANSITIONING TO CIRCULAR BUSINESS MODELS: STRATEGIC AND OPERATIONAL DIMENSIONS

Abstract

The circular economy introduces a new paradigm of business development where the priority shifts from maximizing production volume to maximizing resource efficiency, minimizing waste, and retaining product value throughout its life cycle. This model is incompatible with the traditional linear approach of "take–make–dispose" and requires a profound transformation of existing business models. The issue of transforming business models within the framework of the circular economy is actively explored in both international and Ukrainian academic discourse. Studies by Ferasso et al. (2020), Geissdoerfer et al. (2020), and Lüdeke-Freund, Gold, and Bocken (2019) present typologies of circular business models and identify core mechanisms such as closed resource loops, product life extension, and service-based approaches. Salvador et al. (2020) emphasize key barriers to implementation, including the lack of reverse logistics infrastructure, limited digital integration, and low consumer engagement.