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Organizational capabilities and institutional pressures in the adoption of circular economy

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  • Castro-Lopez, Adrian
  • Iglesias, Victor
  • Santos-Vijande, María Leticia

Abstract

Are companies adopting circular economy strategies or are they just adopting specific circular practices? To what extent are external pressures and organizational capabilities effective in driving these changes? To answer these questions, we propose and test a model that allows for analyzing the differentiated effects of institutional pressures (mimetic, coercive, and social) and organizational agility on the adoption of a circular business model at a strategic level and on the implementation of specific circular practices (in product innovation, production, and recycling). The results obtained on a sample of 218 manufacturing firms show that institutional pressures and organizational agility drive changes at a strategic level in companies, and these changes are ultimately reflected in specific circular practices. Organizational capabilities have a stronger influence on changes in circular product innovation and production, whereas external pressures have a higher impact on changes in recycling processes.

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  • Castro-Lopez, Adrian & Iglesias, Victor & Santos-Vijande, María Leticia, 2023. "Organizational capabilities and institutional pressures in the adoption of circular economy," Journal of Business Research, Elsevier, vol. 161(C).
    • Handle: RePEc:eee:jbrese:v:161:y:2023:i:c:s0148296323001819
    DOI: 10.1016/j.jbusres.2023.113823
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