Towards a circular economy: role of circular ecosystems

The concept of the “circular economy†attracts attention of a wide range of experts as an alternative to the linear model of the economy, which allows minimizing waste and maximizing the value of resources. However, the issues of implementing the concept at the micro economic level and the functioning of cyclical ecosystems were not sufficiently studied. The object of this research is to determine theoretical aspects of the concept of circular economy at the micro-level with an emphasis on cyclical ecosystems, while the subject of the research is companies developing in the direction of circular economy models. Overall, the purpose of the study is to analyze the prospects for the transition of companies into circular economy, including the framework of a circular ecosystem. Methods of analysis and systematization of scientific literature, as well as expert assessments, were used to obtain the results which presented that the issues of implementation of circular economy at the micro level (company) are considered. And the importance of integrating cyclical strategies with the company’s development strategy, using the internal capabilities of the company and external factors affecting the implementation of circular economy is emphasized. An approach to identifying barriers of “feasibility†and “opportunities†in the transition to circular economy is proposed for the implementation of circular economy by companies, taking into account their role in the ecosystem and its evolution. The implementation of the circular economy concept at the micro level requires the development of cyclical strategies of the company, coordinated with the company’s development strategy, organizational transformation of the company and transition to cyclical business models; the success of the transition to a circular economy depends on the ability to turn barriers from constraints into challenges that need to be addressed. At the same time cyclical ecosystem actors have greater opportunities to implement cyclical strategies and transition to cyclical business models. And circular ecosystems can be seen as an effective tool to stimulate the transition of companies to circular ecosystems; the strategies of circular ecosystem actors should be consistent with their role in the ecosystem. The results of the study contribute to a better understanding of the prospects for the transition to circular economy at the micro level, including the framework of a circular ecosystem, as well as they are useful for the development of cases of implementing circular economy and of the formation of a circular ecosystem in general.