IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v34y2025i4p4392-4408.html
   My bibliography  Save this article

Dynamic Capabilities and Microfoundations to Overcome Barriers to Circular Economy Implementation

Author

Listed:
  • Stefano Franco
  • Ilaria Giannoccaro

Abstract

The circular economy (CE) aims to reshape production models, aligning them with environmental and social goals. Recent analyses show that global economic systems in 2023 are recycling only 7.3% of their material usage. One reason is the existence of barriers to CE adoption at multiple levels, which in turn require appropriate dynamic capabilities to be overcome. This research explores the connections between barriers and dynamic capabilities, with a focus on their microfoundations, with the aim to develop a comprehensive framework supporting firms to implement CE business models. The study employs a multiple case study on seven Italian companies that successfully undergone the circular transformation across diverse manufacturing industries belonging to Made in Italy, that is, fashion, food, furniture, and paper. The research outlines seven microfoundations linked to the three dynamic capabilities of sensing, seizing, and reconfiguring. These microfoundations allow firms to overcome barriers at the institutional, supply chain, and firm levels.

Suggested Citation

  • Stefano Franco & Ilaria Giannoccaro, 2025. "Dynamic Capabilities and Microfoundations to Overcome Barriers to Circular Economy Implementation," Business Strategy and the Environment, Wiley Blackwell, vol. 34(4), pages 4392-4408, May.
    • Handle: RePEc:bla:bstrat:v:34:y:2025:i:4:p:4392-4408
    DOI: 10.1002/bse.4171
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.4171
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.4171?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:34:y:2025:i:4:p:4392-4408. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.