Business Models for Strong Circularity—The Role of Informative Policy Instruments Promoting Repair

Abstract

To promote the circular economy and change unsustainable business practices, policymakers are increasingly implementing novel policy instruments. Fostering repair is increasingly seen as a concrete strategy towards strong circularity, involving disruptive business model (BM) transformations.This study explores the impact of the recently implemented mandatory repairability index in France on BMs, utilizing a case study methodology with an embedded design.Our findings reveal 19 emerging company practices that affect all main BM dimensions. We identify three ways retailers and manufacturers adopt the index to shift towards repair‐oriented BMs.While the literature on the interplay between public policies and circular BMs has mainly focused on command‐and‐control policies for circular economy strategies other than repair, we show how an informative policy instrument transcends its role as mere consumer information. Instead, it emerges as a versatile management tool, facilitating the adoption or up scaling of diverse repair activities. However, informative instruments do not ensure widespread diffusion of repair‐based BMs. Instead, we emphasize the imperative of promoting repair through a comprehensive and evolving policy mix.