An Iterative Framework for Circular Business Models: Insights from Mapping and Modelling

Transitioning from linear to circular business models is essential for sustainable resource management; however, challenges persist in implementing effective circular strategies. This study examines how iterative mapping and modelling can facilitate the development of circular battery business models by identifying absent actors and optimising material flows. Employing Design Science Methodology (DSM), the research engages in three iterative cycles of ecosystem mapping, system modelling, and reflection, integrating qualitative and quantitative insights to enhance circular business strategies. The findings demonstrate that static mapping alone is insufficient to capture the complexities of circular ecosystems. By incorporating system dynamics and agent-based modelling, the study highlights gaps in actor participation, regulatory constraints, and inefficiencies in material retention. The results emphasise the importance of dynamic modelling in assessing business feasibility, enabling firms to anticipate supply chain disruptions and policy shifts. This approach offers a structured method for refining circular economy strategies, ensuring adaptability to changing market and regulatory conditions. The study contributes to academic and managerial discussions by providing a replicable framework for designing and testing circular business models.