Circular service innovation: a value co-creation practices approach

Purpose This paper aims to enhance the understanding of circular service innovation through a practice theory perspective. It addresses the following research question: How can circular service innovation be understood and conceptualised using a practice theory-based approach? Design/methodology/approach This paper uses a six-year longitudinal analysis of the service Refill’s development within a larger ecosystem involving multiple actors, including the focal firm, customers, distributors and designers. Findings This paper identifies the value co-creation practices (VCPs) underpinning both the circular Refill service and the linear service it replaces, detailing their transformation in the shift from linear to circular. This transition is driven by changes in the elements that organise practices – procedures, understandings, engagements and materials – and is captured in a theoretically grounded typology of circular VCPs: regenerative making, adaptive providing, looped exchanging and stewardly using. Research limitations/implications The proposed framework contributes to the literature by illustrating circular service innovation as a transformation of VCPs. It further highlights the role of organising elements in shaping these innovations. Practical implications This paper provides managers with a blueprint for how circular service innovation involves the transformation of VCPs. Furthermore, the proposed framework highlights the need to redefine the organising elements of VCPs to achieve circularity, including engagements, understandings, procedures and materials. Originality/value This paper offers an original contribution by conceptualising circular service innovation through the lens of practice theory, articulated in a dedicated framework.