Institutional voids and business model convergence in the recycling industry

Considering that recycling is seldom economically viable, this study analyzes how recycling organizations perceive institutional voids and adapt their business models to propel a transition from waste crisis to establishing waste management services. The analysis is embedded in the sustainability transitions literature and is approached from an institutional void and business model lens. Qualitative research was conducted with 23 organizations in the recycling industry of Lebanon. The main findings revealed that public voids mainly cause constraints with few exceptions of opportunities, whereas some market voids are perceived as constraints at times and opportunities at others, and coping with these voids leads to a convergence of business models. This study contributes to business model adaptation by examining its role in the transition process and to sustainability transitions research by focusing on how niche-level actors introduce waste management services that are otherwise the regime's responsibility.