This study contributes to the conceptualization of a sustainable circular business model (CBM), the application of the circular economy (CE) by companies. The study utilized a three‐level framework adapted from the CE literature with company (micro), supply chain (meso) and society (macro) levels. This multiple‐case study in the textile industry included two types of companies operating in the CE: companies founded on the sustainable principles of a CE (natives) and companies transitioning to a CE from the linear economy (adopters). The findings show that the adopters emphasized long‐term economic sustainability on a company level and implemented CE elements to varying degrees on all three levels. The natives pursued business decisions from environmental and social sustainability standpoints, and the three levels were integral in their systemic approach to a CE. The study highlights two key claims: established operational structures and economic volition hindered adopters in their systemic CE implementation, and an integral part of the CBM for natives was a proactive approach towards the society level.
This study investigated entrepreneurs’ motivations to implement circular economy (CE) practices and the ways in which their approaches to CE practices differed by their sociocultural context. The research aimed to contrast the contemporary instrumental perspective on CE through an ecologically dominant logic. The empirical analysis focused on Finland and Japan, two countries with distinct sociocultural contexts but similar regulatory environments regarding the CE. The study analysed entrepreneurs’ motivations towards the CE through self-determination theory that makes a distinction between different levels of internalization in motivations. The Finnish entrepreneurs were characterised by more frequent intertwined intrinsic/transcendent motivations and a vocal approach to CE. The Japanese entrepreneurs’ motivations were more varied; some were intrinsically interested in the CE, while some were even unaware of the CE concept despite operating CE businesses. The Japanese entrepreneurs resorted to masking their CE businesses to better relate with the surrounding linear system. The study shows how the individualistic Finnish culture fostered progress on the CE, while the collectivistic Japanese culture emphasised the need for relatedness and caused stagnation in the CE in its society.
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