THE CIRCULAR APPROACH AS AN INNOVATIVE MODEL OF BUSINESS MODEL TRANSFORMATION IN ENTERPRISES
Abstract
This article examines the circular approach as an innovative model of enterprise transformation in the context of structural changes in modern economic systems. It argues that the circular economy should be interpreted not merely as a strategy of resource efficiency and waste reduction, but as an integrated management model that combines resource flows, product design, business processes, and value creation mechanisms. The study develops an integrated framework of circular transformation linking governance, circular design, value creation, and business model reconfiguration. A system of indicators is proposed to assess circular performance, covering resource efficiency, lifecycle extension, circularity of material flows, service-based value creation, and innovation capacity. Based on these indicators, an integral circularity index is constructed to evaluate the level of enterprise transformation and support strategic decision-making. The empirical validation is conducted through a single-case study of a municipal transport enterprise, demonstrating that remanufacturing and lifecycle management significantly reduce costs and extend asset utilization. The findings confirm that circular transformation enhances economic efficiency, resilience, and sustainable development. The study contributes by integrating resource-based, process-based, and management perspectives into a unified analytical framework.
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