Circularity as a Dynamic Capability: A Review and Future Agenda for a Circular Transition

Abstract

Circular economy practices are increasingly aligning with the strategies of organizations operating in innovative and dynamic environments and can be considered a new capability to be explored. This study aims to systematize knowledge about dynamic capability and the circular economy. The results reveal that an organization’s ability to transition from a linear to a circular model is directly related to its capacity to develop dynamic capabilities, facilitating the integration of circular practices into its strategies and enhancing performance.