© 2016 Elsevier LtdSustainable business model innovation is an emerging topic, but only few tools are currently available to assist companies in sustainable business modelling. This paper works towards closing this gap by bringing together ‘design thinking’ and ‘sustainable business model innovation’ to refine the creative process of developing sustainable value propositions and improve the overall business modelling process. This paper proposes a new workshop framework based on a value mapping process, which was developed by literature synthesis, expert interviews, and multiple workshops. The framework was transferred into a workshop routine and subsequently tested with companies and students. The resulting ‘Value Ideation’ process comprises value ideation, value opportunity selection, and value proposition prototyping. The integration of design thinking into the innovation process helps to create additional forms of value and include formerly underserved stakeholders in the value proposition. Thus, the Value Ideation process helps companies to improve their performance while becoming more sustainable. Workshop evaluations revealed that the Value Ideation process assists companies in enhancing their value proposition by including positive economic, societal, and environmental value and a wider range of stakeholder interests. The ‘design thinking’ elements stimulate the ideation process and help to harmonise often conflicting stakeholder interests.This is the author accepted manuscript. The final version is available from Elsevier via http://dx.doi.org/10.1016/j.jclepro.2016.07.02

The circular economy concept is gaining traction in academia, industry and policymaking as a strategy to reduce resource depletion, waste and emissions. Many authors see business model innovation as a critical lever for the concept's implementation on the organisational level. Despite the importance of the topic, the drivers and barriers to different types of circular business model innovation remain unclear. We address this gap by comparing drivers and barriers for four generic circular business model innovation types: start‐up, diversification, transformation and acquisition. Relying on a structured comparative literature review using cross‐reference searches, we develop a theoretical framework of drivers and barriers that we apply to a multi‐case study of 21 organisations covering three of the four types, with some additional insights on the fourth. We identify 25 barriers and 10 drivers, clustered into seven categories, and outline how they distinctively affect the innovation types. Start‐ups and diversifications are more commonly driven by market and financial factors, while transformations are led by market and organisational factors. These three types are highly affected by legal and financial barriers; however, while start‐ups are more prone to face value chain challenges, incumbents are more susceptible to market and organisational barriers. Our study provides novel empirical data that validate and complement previous research and offers an additional analysis perspective in the transition towards a more sustainable and circular economy.