From Shared Knowledge to Sustainable Value: Social Innovation-Based Entrepreneurship in the Transition Towards Circular Business Models

The transition towards circular economy models increasingly depends on entrepreneurial initiatives capable of integrating economic viability with social and environmental objectives. However, existing research provides limited explanation of how sustainable entrepreneurs mobilise shared knowledge and social innovation to navigate tensions between competing institutional logics in circular contexts. This study clarifies the role of shared knowledge and social innovation by explaining how circular sustainable value is created through circular business model development. This article develops an integrative framework based on a structured synthesis of the literature on sustainable entrepreneurship, social innovation, shared knowledge, institutional logic, and circular business models. The study does not rely on primary empirical data but focuses on theoretical integration across complementary research to advance conceptual understanding of circular value creation. The article proposes a three-stage framework explaining how shared knowledge is transformed into circular sustainable value through social innovation mechanisms. It illustrates how diverse knowledge inputs interact with institutional logics, how social innovation processes translate these inputs into collaborative practices, and how circular business models generate multidimensional value under conditions of institutional complexity. The framework offers guidance for entrepreneurs, policymakers, and ecosystem actors involved in circular economy transitions and helps clarify how collaborative knowledge practices and social innovation processes can support the design and implementation of circular business models. This article does not empirically test the proposed framework. The findings are limited to theoretical development. Future research is encouraged to examine the framework empirically through longitudinal case studies, comparative designs, or mixed-method approaches, and to operationalise its key constructs.