Circular Business Models in the Dairy Industry - Analyzing a consumer's propensity to buy a firm's product depending on the level of circularity of its business model

Sammanfattning: Following a brief introduction on the history of Corporate Social Responsibility (CSR) and the concept of the Circular Economy (CE), the impact of the dairy industry on the environment is introduced. This study then focuses on the gaps in research and the problem of implementing CE practices in the dairy industry. After a review of the literature on the Circular Economy and the Business Model, this study makes a conceptualization of the Circular Business Model (CBM) that fits the dairy industry, and of the Circular Business Strategies (CBSs) that the CBM includes. Thereafter, the paper mentions the importance of the level of circularity in a business model and the relevance of studying young consumers when studying the CBM. The study focuses on two main aspects: the importance that these young consumers give to CBSs in regards to their view on sustainability and the way the level of circularity of a firm’s business model affects young consumer propensity to buy a product. To answer the research questions deriving from these aspects, a survey targeting students at the Lund University School of Economics and Management (LUSEM) was conducted using a selection of three companies in the dairy industry: Arla, Coop, and Oatly. Evidence that young consumers consider CBSs to be of importance and that high levels of circularity in a firm’s business model positively affect a young consumer’s intention to purchase a product can be found in the results of the survey. Differences in the results can be found depending on the sustainability consciousness of these consumers. This paper then discusses some practical implications for managers in the industry, including choosing the right level of circularity a firm’s business model can possess and recognizing the role the CBM can play in helping a firm to evolve. Finally, deriving from the results of the survey, an integrated framework depicting the different CBSs that can be used in the CBM is proposed for further research into this area.