Ecosystem building strategies for circular start-ups: the case of the food sector

Abstract

The current industrial food system generates numerous environmental impacts due to the linear economic model of ‘’take-make-waste’’. In order to withstand current and future challenges the food system needs to transition towards a circular food production system. Whereas the focus amongst practitioners and academics in the circular field tends towards large companies, the circular start-ups represent the innovative entity that can generate new innovative business models and quickly adapt to changes. However, start-ups often have difficulty with generating viable business models. This study aims to determine how circular start-ups in the food sector can create a supportive external environment for the development and diffusion of circular business model innovations, in doing so supporting the transition towards a circular food production system. Building on existing literature of strategic collective system building. Based on strategic management, technological innovation systems, and business ecosystems literature a theoretical framework has been created. The concepts of strategic collective system building, and the innovation system actor analysis have been operationalised within a semi-structured interview. And used to perform a multiple case study analysis of 13 circular start-ups in the food sector of the Netherlands to validate the strategic collective system building framework for circular business model innovations. The data collection included 21 semi-structured interviews and desk research. The empirical findings showed that strategic collective system building appeared to be relevant for the creation of a supportive external environment for circular business models innovation. Also, this research validated the strategic collective system building framework with circular start-ups in the food sector. The empirical findings showed that in order to strengthen the CSUs ecosystem several refinements of activities are needed. These refinements included: incorporating a reciprocal relationship within the exchange of knowledge; add collaboration with the current regime as collaboration with competition; enrich collaborative marketing with creating behavioural change towards sustainable consumption; add reporting, monitoring and minimum standards in the standardisation of processes. This refined framework complemented with insights on the barriers, structural problems and relevant actors within the innovation system for collaboration provide strategic insights for CSUs to create a supportive ecosystem. In this way the research contributes to the creation of a strong external environment for circular business models within the food sector to support the transition towards a circular food production system.