Circular business model, technology innovation and performance: A strategic-based theoretical framework in the Indonesian energy transition

Along with the popularity of the environment, social and governance (ESG) concerns, the circular econ-omy concept has gained tremendous attraction from the industries, policy makers and academicians. On a firm level, this is implemented through the so-called Circular Business Model (CBM), which is seen through various initiatives. This includes firms in the energy industry, who are transitioning from con-ventional to renewable energy sources. Nevertheless, despite of the importance and the omnipresence of the practice, there is still lack of empirical research within the CBM topic. In particular, empirical research combining the CBM and technological innovation topic within energy industry (as technology-intensive and high risk industry) in developing country such as Indonesia, is still lacking. To answer this gap, using literature review as research method, this paper has arrived into the following propositions as main result; (1) there is a positive relationship between firm's level of CBM and technol-ogy innovation adoption to firm's performance, where (2) the two antecedents that are positively impact-ing firm's level of CBM and technology innovation adoption are leader's innovativeness and perceived level of technology. For academicians, this research is expected to provide contribution to the energy transition literatures within CBM and technology innovation adoption topic. Propositions provided in this paper is expected to serve as valuable basis in conducting further empirical research. For practitioners, this research is expected to provide valuable insights to make improvements and/or innovations in terms of business model, technology adoption, and strategy. At last, this research is expected to support energy transition. (c) 2023 Elsevier Ltd. All rights reserved.