Circular business models generation for automobile remanufacturing industry in China: Barriers and opportunities

Abstract

Purpose

Although China can be considered an early adopter of the circular economy, there are few studies of remanufacturing business models (BMs) in the context of the Chinese automobile industry. The purpose of this paper is to investigate viable BMs, summarizes current obstacles and anticipates future development opportunities and directions.

Design/methodology/approach

The cross-case analysis considers the roles of value networks and of customer value proposition and interface in circular business models (CBMs) by examining the strategies and tactical measures of two leading remanufacturers. The data are collected from semi-structured interviews, documents, etc.

Findings

The analysis identifies the following components of viable BMs of remanufacturers: reclaiming raw material, managing used components, producing new products and marketing. Several current obstacles are summarized from four perspectives: policy barriers and insufficient government support; consumer awareness; related product quality; and technology. The study also identifies future directions and opportunities for the automobile parts remanufacturing industry.

Originality/value

This study contributes to the CBM literature by mapping the barriers and opportunities in remanufacturing. The results have shed some light into the field of sustainability in manufacturing firms by empirically testing the theoretical model. The results will help managers to design viable CBMs in different contexts.

Citation

Shao, J., Huang, S., Lemus-Aguilar, I. and Ünal, E. (2020), "Circular business models generation for automobile remanufacturing industry in China: Barriers and opportunities", Journal of Manufacturing Technology Management, Vol. 31 No. 3, pp. 542-571. https://doi.org/10.1108/JMTM-02-2019-0076