Remanufacture for sustainability: a comprehensive business model for automotive parts remanufacturing

ABSTRACT Original Equipment Manufacturers (OEM) are shifting towards remanufacturing, signalling growth in new investments in remanufacturing. It is a noticeable global trend owing to the popularity of circularity and sustainability concepts, catalysed by environmental legislations and profit motives. Thus, the development of effective business models for remanufacturing is essential. However, capturing the entirety of business components essential for remanufacturing is yet to be seen in the industry. The purpose of this research is to develop a comprehensive business model for automotive parts remanufacturing considering all major business components, namely: customer segments; value propositions; channels; customer relationships; revenue streams; key resources; key activities; key partnerships; and cost structure. In this pursuit, a thematic analysis of related literature was conducted to define the identified business components. The Business Model Canvas framework was used to present the developed business model in the context of automotive parts remanufacturing. The resultant business model with nine components is expected to support decision-making for investors and entrepreneurs in the automotive remanufacturing industry.