Circular Business Models for Logistic Service Providers

Logistic Service Providers (LSPs) are central actors in advancing the Circular Economy (CE) due to their pivotal role in managing material, information, and service flows across supply chains. Yet, how LSPs are integrating CE principles into their business models remains underexplored. This study addresses this gap by identifying and analyzing Circular Business Model (CBM) archetypes adopted by LSPs. Drawing on a multiple-case study approach involving 27 global LSPs, we conduct a qualitative content analysis of GRI-aligned sustainability reports and complementary firm documents. Our findings reveal four distinct CBM archetypes: (1) efficiency optimization business models, focused on minimizing emissions and resource use through digital innovation, representing evolutionary business model innovation (BMI); (2) reverse logistics business models, enabling post-use material recovery and reintegration, aligned with adaptive BMI; (3) asset life-extending business models, combining adaptive and focused BMIs to preserve infrastructure and vehicle lifespan via predictive maintenance; and (4) service-based logistics business models, involving complex BMI that reconfigures logistics through sharing platforms and access-based services. The novelty of this study lies in developing the first typology of CBMs tailored to the logistics sector, clarifying how circularity is operationalized in a domain often overlooked by CBM research. The study contributes to CE and business model literature by clarifying how LSPs operationalize circularity and provides actionable guidance for logistics managers navigating sustainability transitions.