The viability of novel network-level circular business models (CBMs) is debated heavily. Many companies are hesitant to implement CBMs in their daily practice, because of the various roles, stakes and opinions and the resulting uncertainties. Testing novel CBMs prior to implementation is needed. Some scholars have used digital simulation models to test elements of business models, but this this has not yet been done systematically for CBMs. To address this knowledge gap, this paper presents a systematic iterative method to explore and improve CBMs prior to actual implementation by means of agent-based modelling and simulation. An agent-based model (ABM) was co-created with case study participants in three Industrial Symbiosis networks. The ABM was used to simulate and explore the viability effects of two CBMs in different scenarios. The simulation results show which CBM in combination with which scenario led to the highest network survival rate and highest value captured. In addition, we were able to explore the influence of design options and establish a design that is correlated to the highest CBM viability. Based on these findings, concrete proposals were made to further improve the CBM design, from company level to network level. This study thus contributes to the development of systematic CBM experimentation methods. The novel approach provided in this work shows that agent-based modelling and simulation is a powerful method to study and improve circular business models prior to implementation.
Industrial Symbiosis Networks (ISNs) consist of firms that exchange residual materials and energy locally, in order to gain economic, environmental and/or social advantages. In practice, ISNs regularly fail when partners leave and the recovery of residual streams ends. Regarding the current societal need for a shift towards sustainability, it is undesirable that ISNs should fail. Failures of ISNs may be caused by actor behaviour that leads to unanticipated economic losses. In this paper, we explore the effect of these behaviours on ISN robustness by using an agent-based model (ABM). The constructed model is based on insights from both literature and participatory modelling in three real-world cases. It simulates the implementation of synergies for local waste exchange and compost production. The Theory of Planned Behaviour (TPB) was used to model agent behaviour in time-dependent bilateral negotiations and synergy evaluation processes. We explored model behaviour with and without TPB logic across a range of possible TPB input variables. The simulation results show how the modelled planned behaviour affects the cash flow outcomes of the social agents and the robustness of the network. The study contributes to the theoretical development of industrial symbiosis research by providing a quantitative model of all ISN implementation stages, in which various behavioural patterns of entrepreneurs are included. It also contributes to practice by offering insights on how network dynamics and robustness outcomes are not only related to context and ISN design, but also to actor behaviour.
Efficiency of city logistics activities suffers due to conflicting personal preferences and distributed decision making by multiple city logistics stakeholders. This is exacerbated by interdependency of city logistics activities, decision making with limited information and stakeholders’ preference for personal objectives over system efficiency. Accordingly, the key to understanding the causes of inefficiency in the city logistics domain is understanding the interaction between heterogeneous stakeholders of the system. With the capabilities of representing a system in a natural and flexible way, agent based modelling (ABM) is a promising alternative for the city logistics domain. This research focuses on developing a framework for the successful implementation of the ABM approach for the city logistics domain. The framework includes various elements – a multi-perspective semantic data model (i.e. ontology) and its validation, the development of an agent base model using this ontology, and a validation approach for the agent-based model. Conclusively, the framework shows that a rigorous course can be taken to successfully implement agent based modelling approach for the city logistics domain.
