Abstract
The circular economy emphasizes fundamental changes in today's dominating business models. Organizations dealing with circular innovation usually face multiple tensions emerging from the paradoxical relationship between circularity and economic value creation. The paper aims to explore tensions of implementing circular business model. Following an abductive approach, the research methodology employs semi-structured interview and observation methods in manufacturing industry. Research results lets us to identify various organizational-level tensions, that may lead to five groups of paradoxes, namely learning, organizing, performing, belonging and collaborating. We contribute by explaining how organizations response and deal with the complexity of the circular economy through paradox management perspective. Importantly, a strategic paradox in the field of the circular economy has been identified.
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