Circular economy configuration indicators in organizational life cycle theory

Abstract

Abstract Circular economy is a rapidly evolving economic system designed to benefit society, business and environment. However, the current circular economy policies and resulting business models are more or less universal, meaning they largely neglect the organisational specifics. Therefore, research that seeks to enhance the circular economy mindset and, at the same time, the innovativeness of firms needs to include more analyses of firm-specific characteristics and issues with a view to more quickly making the modern sustainable reality. As a response, the current study contributes to a better understanding of the role of circular economy practices at different stages of the firms’ evolution. Using crisp-set qualitative comparative analysis we upgrade the organisational life cycle theory by developing 13 circular economy configuration indicators, 10 for the innovative (In1-In10) and 3 for the conservative (Co1-Co3) stage of the organisational life cycle. The various circular economy practices and (non–) financial mechanisms at work throughout the organisational life cycle reveal that a holistic approach to examining the field should be a priority.