Title: Applying the circular economy concept to a sustainable business model for large retailers: the case of IKEA

Authors: Ghassane Bouhia

Addresses: Ecole des Ponts Business School, Ecole Nationale des Ponts et Chaussées, 6 place du Colonel Bourgoin, 75012, Paris, France

Abstract: Large retailers will likely play a vital role in the path toward a more sustainable society. The problem is that there is a lack of understanding of how the concept of the circular economy can be developed into a sustainable business model for large retailers. This case study explores these topics, using the example of Swedish retailer IKEA and how it transparently applied the circular economy concept to transition from a linear business model to a sustainable business model. The research method included a review of historical, seminal, and current peer-reviewed scholarly papers on the study topic. IKEA's initiatives to go all-green and to assist its suppliers in decreasing their negative impacts on the environment have had positive results on the retailer's overall operations. This case study can be utilised as a guideline for other large retailers to grasp how they can also influence their partners toward achieving circularity.

Keywords: circular economy; circularity; sustainable business model; large retailers; IKEA; single case study; sustainable suppliers; shared value creation; social innovation; competitiveness.

DOI: 10.1504/IJC.2022.127400

International Journal of Competitiveness, 2022 Vol.2 No.3, pp.212 - 233

Received: 12 Jul 2022
Accepted: 17 Jul 2022
Published online: 03 Dec 2022 *

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