THE CIRCULAR BIOECONOMY: Company-Level Strategic Perspectives

Abstract

The emerging circular bioeconomy refers to a system in which bio-based materials are utilised effectively by using waste and side streams of industrial processes and reusing, recycling, and cascading bio-based materials. From the business actor‘s perspective, this inherently systemic business environment requires deeper and wider-ranging coordination and collaboration than that in the current linear economy. In this chapter, we approach the circular bioeconomy from the company perspective and utilise the strategic management framework to discuss the potential challenges and opportunities for a company participating in circular bioeconomy business in comparison to participating in the linear economy. Our study is based on the transaction cost theory literature and organisational cognition and capabilities. In this light, we discuss the roles of capabilities, cooperation and coordination, incentives, and the company‘s boundaries in the value creation process. We also take into consideration the business model and business ecosystem views. We aim to advance the understanding of the circular bioeconomy by shedding light on the company-level strategic questions relevant to business renewal aiming for higher levels of sustainability.