Value Creation from Waste Through Remanufacturing: Understanding Barriers from the Perspective of Business Model Dimensions

Abstract

Waste management is an integral part of the circular economy that helps create value from end-of-life (EoL) products. Effective approaches such as 3R (reusing, remanufacturing, and recycling) enhance the use of discarded EoL products. Remanufacturing is an effort that improves waste management by extracting the highest possible value from EoL products and requalifying them for a like new product. This paper examines how a heavy vehicle manufacturer can create value from EoL products by modifying business model (BM) dimensions through remanufacturing. This study has been conducted from the perspective of barriers to implementing remanufacturing. The results of the thematic analysis provide an understanding of the effects of barriers on the BM dimensions and modifications that are needed in these dimensions. Developing this understanding can assist manufacturers in modifying current BM and creating sustainable value through remanufacturing. BM modification involves incorporating modular architecture into product development along with the value proposition dimension. In addition, developing value creation and value delivery dimensions emphasizes the importance of integrating circularity features into supply chain configurations. In this light, the results suggest that by moving toward circular supply chains, manufacturers can manage waste, reduce component downgrading rates, effectively extract value from EoL products, and benefit from reduced reverse logistics costs.