Enablers of Managerial Practices for Circular Business Model Design: An Empirical Investigation of an Agro-Energy Company in a Rural Area

Abstract

The concept of circular economy (CE) has gained prominence in management research as a new industrial approach that society, companies, and policymakers should follow in aiming to manage for sustainability issues. The adoption of CE principles has highlighted particular managerial practices that companies can implement in their business models. However, existing research still falls short of describing in sufficient detail the enablers of these practices for a circular business model design. This issue, especially in rural areas, is particularly interesting for the agri-food sector, which is characterized by enormous sustainability challenges, including food production and waste, packaging, transportation, consumer habits and behavior, and energy production and consumption. This article takes stock of this gap through an analysis of the enablers of managerial practices in Fiusis, a company operating in the agro-energy sector of a rural area, which has designed a circular business model and was recognized as “the best business model in the rural area” by the European Commission in 2019. The case highlights the importance of a suitable political and institutional environment beneficial to the starting-up and development of the business, and the importance of collaborating within the community of stakeholders for the creation of a new culture of sustainability.