DEVELOPMENT OF STRATEGIC BUSINESS MODELS OF AGRICULTURAL ENTERPRISES IN THE CONTEXT OF THE CIRCULAR ECONOMY
Abstract
The article examines the theoretical and practical aspects of the formation of circular business models in the activities of agricultural enterprises. The relevance of the study is determined by the increasing resource constraints, environmental challenges, and the need to transition from a linear to a circular economic model in the agricultural sector. The study generalizes scientific approaches to the interpretation of the concept of a business model and identifies the main conceptual orientations in its definition, including value creation, profit generation, and ensuring enterprise competitiveness. The key principles and features of the functioning of the circular economy in the agricultural sector are substantiated, in particular rational use of natural resources, minimization of waste generation, formation of closed production cycles, reuse of materials, and cascading use of biological resources. Based on the analysis of scientific research and practical experience, the main types of circular business models applicable to agricultural enterprises are systematized. These include Product-as-a-Service models, repair and remanufacturing models, reuse and recycling models, biological cycles, and circular supply chains. Special attention is paid to the adaptation of these models to the specifics of agricultural production and the identification of their potential benefits for enterprises. The study also identifies key barriers to the implementation of circular business models in the agricultural sector, including economic, technological, infrastructural, institutional, and socio-cultural constraints. It is proved that the implementation of circular business models can generate significant economic, environmental, and social effects. In particular, they contribute to improving resource efficiency, reducing production costs, minimizing environmental impact, creating additional sources of income, and supporting sustainable development of rural areas. The research results confirm that circular business models are an important strategic tool for enhancing the competitiveness and long-term sustainability of agricultural enterprises in the context of the transformation of modern economic systems.
References
Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, vol. 43, no. 2–3, pp. 172–194. DOI: https://doi.org/10.1016/j.lrp.2009.07.003
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: A handbook for visionaries, game changers, and challengers. Hoboken, NJ: John Wiley & Sons.
Chesbrough, H., & Rosenbloom, R. S. (2002). The role of the business model in capturing value from innovation: Evidence from Xerox Corporation’s spin-off companies. Industrial and Corporate Change, vol. 11, no. 3, pp. 529–555.
Stahel, W. R. (2016). The circular economy. Nature, vol. 531, no. 7595, pp. 435–438. DOI: https://doi.org/10.1038/531435a
Bocken, N. M. P., de Pauw, I., Bakker, C., & van der Grinten, B. (2016). Product design and business model strategies for a circular economy. Journal of Industrial and Production Engineering, vol. 33, no. 5, pp. 308–320. DOI: https://doi.org/10.1080/21681015.2016.1172124
Ghisellini, P., Cialani, C., & Ulgiati, S. (2016). A review on circular economy: The expected transition to a balanced interplay of environmental and economic systems. Journal of Cleaner Production, vol. 114, pp. 11–32. DOI: https://doi.org/10.1016/j.jclepro.2015.09.007
Balabash, O. S., & Slyvka, V. (2024). Metodychni osnovy analizu makroseredovyshcha pidpryiemstv [Methodological foundations of enterprise macroenvironment analysis]. Finansovo-kredytni systemy: perspektyvy rozvytku, no. 3(14), pp. 78–86. Available at: https://periodicals.karazin.ua/fcs/article/view/24151/22100 (in Ukrainian)
Kuznetsova, I. O., & Balabash, O. S. (Eds.). (2023). Suchasni tekhnolohii upravlinnia [Modern management technologies]. Kharkiv: Disa Plius. (in Ukrainian)
Balabash, O. B., & Vu Khan Khuen (2019). Analiz eksportnoho potentsialu (na prykladi ahrarnykh pidpryiemstv Ukrainy) [Analysis of export potential (on the example of agricultural enterprises of Ukraine)]. Instytut bukhhalterskoho obliku, kontrol ta analiz v umovakh hlobalizatsii, no. 3–4, pp. 20–27. (in Ukrainian)
Balabash, O. S., & Kuznetsova, I. O. (2020). Upravlinnia biznes-stiikistiu pidpryiemstv na rynku khliboproduktiv [Management of business sustainability of enterprises in the bakery products market]. Kharkiv: Disa Plius. (in Ukrainian)
Elliot, S. (2002). Electronic commerce: B2C strategies and models. Chichester, UK: John Wiley.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2018). Strategic management and business policy: Globalization, innovation and sustainability (15th ed.). Boston: Pearson.
Porter, M. E. (1996). What is strategy? Harvard Business Review, vol. 74, no. 6, pp. 61–78.
Shvydanenko, H. O., & Revutska, N. V. (2013). Formuvannia biznes-modeli pidpryiemstva [Formation of the enterprise business model]. Kyiv: KNEU. Available at: https://ir.kneu.edu.ua/handle/2010/25209 (in Ukrainian)
Thompson, A. A., & Strickland, A. J. (2001). Strategic management: Concepts and cases (12th ed.). New York: McGraw-Hill Higher Education.
Zott, C., Amit, R., & Massa, L. (2011). The business model: Recent developments and future research. Journal of Management, vol. 37, no. 4, pp. 1019–1042. DOI: https://doi.org/10.1177/0149206311406265
Donner, M., Gohier, R., & de Vries, H. (2020). A new circular business model typology for creating value from agro-waste. Science of the Total Environment, vol. 716, pp. 137065. DOI: https://doi.org/10.1016/j.scitotenv.2020.137065
Vasylieva, O. O., Domashenko, S. V., & Hil, L. A. (2024). Tsyrkuliarni biznes-modeli: bariery zastosuvannia ta povedinka spozhyvachiv [Circular business models: Barriers to implementation and consumer behavior]. Ekonomika ta suspilstvo, no. 70. DOI: https://doi.org/10.32782/2524-0072/2024-70-136 (in Ukrainian)
Podra, O. P., & Horoshko, Yu. V. (2022). Tsyrkuliarni modeli upravlinnia rozvytkom biznesu: problemy ta perspektyvy v Ukraini [Circular models of business development management: Problems and prospects in Ukraine]. Biznes Inform, no. 11, pp. 231–236. (in Ukrainian)
Ruda, M. V., & Myrka, Ya. V. (2020). Tsyrkuliarni biznes-modeli v Ukraini [Circular business models in Ukraine]. Menedzhment ta pidpryiemnytstvo v Ukraini: etapy stanovlennia ta problemy rozvytku, vol. 2, no. 1, pp. 107–121. (in Ukrainian)
Balabash, O. S. (2025). Reinzhynirynh biznes-modeli torhovelnoho pidpryiemstva yak instrument stratehichnoho upravlinnia [Reengineering of the business model of a trading enterprise as a tool of strategic management]. In: Kuznetsova, I. O., & Balabash, O. S. (Eds.), Aktualni napriamy rozvytku menedzhmentu: problemy ta rishennia. Kharkiv: Disa Plius. (in Ukrainian)
Kuznetsova, I., Balabash, O., & Karpenko, Y. (2026). Formation of pharmaceutical enterprises’ strategy based on the development of operational capabilities. In: Semenov, A., Yepifanova, I., & Kajanová, J. (Eds.), Data-Centric Business and Applications, vol. 275. Cham: Springer. DOI: https://doi.org/10.1007/978-3-032-10153-2_18
Copyright (c) 2026 О.С. Балабаш, В.С. Сливка
This work is licensed under a Creative Commons Attribution 4.0 International License.
