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Circular economy, the transition of an incumbent focal firm: How to successfully reconcile environmental and economic sustainability?

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  • Alessandro Gandolfo
  • Lorenzo Lupi

Abstract

Circular economy (CE) has garnered increasing attention in political circles and practitioner literature thanks to its potential to overcome the harmful consequences of linear patterns of growth. Nonetheless, the adoption of sustainable practices entails a holistic approach requiring businesses to make significant changes to their production, technologies and stakeholder management. These challenges resulted in limited progress in terms of the practical implementation of CE. This paper addresses the need for more literature focused on the pragmatic aspects of applying this paradigm to incumbent firms. The author presents the journey that Lucart S.p.A., a major European tissue paper manufacturer, has undertaken between 2014 and 2020 to apply CE principles to its practices. Insights from the transformation process, reconstructed through interviews with the firm's management and environmental impact data, suggest that to succeed it takes innovating (plants, products and marketing strategies) and setting up supply chains that reconcile environmental and economic sustainability.

Suggested Citation

  • Alessandro Gandolfo & Lorenzo Lupi, 2021. "Circular economy, the transition of an incumbent focal firm: How to successfully reconcile environmental and economic sustainability?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3297-3308, November.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:7:p:3297-3308
    DOI: 10.1002/bse.2803
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    Cited by:

    1. Razzaq, Asif & Sharif, Arshian & Afshan, Sahar & Li, Claire J., 2023. "Do climate technologies and recycling asymmetrically mitigate consumption-based carbon emissions in the United States? New insights from Quantile ARDL," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    2. Jenni Kaipainen & Leena Aarikka‐Stenroos, 2022. "How to renew business strategy to achieve sustainability and circularity? A process model of strategic development in incumbent technology companies," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 1947-1963, July.
    3. Syed Abdul Rehman Khan & Asif Razzaq & Zhang Yu & Sharon Miller, 2021. "Retracted: Industry 4.0 and circular economy practices: A new era business strategies for environmental sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4001-4014, December.
    4. Marco Antonio Paula Pinheiro & Daniel Jugend & Ana Beatriz Lopes de Sousa Jabbour & Charbel Jose Chiappetta Jabbour & Hengky Latan, 2022. "Circular economy‐based new products and company performance: The role of stakeholders and Industry 4.0 technologies," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 483-499, January.
    5. Päivi Luoma & Romana Rauter & Esko Penttinen & Anne Toppinen, 2023. "The value of data for environmental sustainability as perceived by the customers of a tissue‐paper supplier," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3110-3123, November.
    6. Mostaghel, Rana & Oghazi, Pejvak & Lisboa, Ana, 2023. "The transformative impact of the circular economy on marketing theory," Technological Forecasting and Social Change, Elsevier, vol. 195(C).

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