Circular by Design: Unlocking sustainable growth through regnerative circular business model innovation

The transition to a circular economy is increasingly recognised as a strategic imperative for achieving sustainable development, environmental resilience, and long-term business growth. This paradigm shift engenders the design of circular business models (CBMs) that prioritise resource utilisation and minimise waste. This research investigates how CBMs, when designed with regenerative principles at their core, can unlock pathways to sustainable value creation and foster green innovation. By prioritising regenerative resource flows, extending product lifespans, and minimising waste, the circular economy presents an alternative to the prevailing linear model of take-make-dispose logics. Our study posits that CBMs are dynamic processes that necessitate foresight-oriented thinking and innovative inputs for managing change rather than retrofitting circularity into the design phase. Understanding this dynamic process and the need for creativity is crucial to design an effective CBM to realise scalable and sustainable outcomes. It further proposes a typology of regenerative design strategies, such as reuse, remanufacturing, product-as-a-service (PaaS), and sharing platforms, for circular model innovation and evaluates their impact on environmental, economic and social performance indicators in resource-intensive industries such as fashion and manufacturing, where high material outputs and environmental costs drive an urgent need for systemic change. Drawing on in-depth case studies from textile manufacturing, retail and marketing companies, this research examines the strategic design elements of CBMs that simultaneously foster ecological regeneration and competitive advantage. It provides an innovative design framework that enables strategic choices for eco-innovation and customer engagement. Ultimately this study advances a theoretical model for ‘circular by design’ thinking that not only can guide managerial practice but also offers policy implications and future research directions.