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The us in reUSe: Theorizing the how and why of the circular economy
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration. Sustainability Department, ESCP Business School, Paris, France.ORCID iD: 0000-0002-8874-1385
Domaine de Luminy, Kedge Business School (Marseille), Marseille, France; Macquarie Business School, Macquarie University, Sydney, NSW, Australia.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.
Kedge Business School (Bordeaux), Talence, France.
2022 (English)In: Business Strategy and the Environment, ISSN 0964-4733, E-ISSN 1099-0836, Vol. 31, no 6, p. 2741-2753Article in journal (Refereed) Published
Abstract [en]

Despite considerable interest into circular economy, it remains undertheorized and underdeveloped. In response, this article advances circular economy by drawing on two theories to explain how firms can increase the circularity of resource use and why they are incentivized to do so. We refer to Modern Portfolio Theory to link the resource use of individual companies to the resource use of a group of firms. In doing so, we show how—and under which conditions—resource use decreases when circulated at the group level. We then refer to principles from evolutionary biology to explain why it is beneficial to structure resource flows at the group level, even when the resource-reducing effect might not materialize for individual firms. In combining both perspectives we challenge entrenched ways of “doing” circular economy: We offer an integrated theoretical approach that helps inform managers' decision-making on circular resource use in practice.

Place, publisher, year, edition, pages
John Wiley & Sons, 2022. Vol. 31, no 6, p. 2741-2753
National Category
Business Administration
Research subject
sustainability
Identifiers
URN: urn:nbn:se:umu:diva-191954DOI: 10.1002/bse.3003ISI: 000747552400001Scopus ID: 2-s2.0-85123735720OAI: oai:DiVA.org:umu-191954DiVA, id: diva2:1632877
Available from: 2022-01-28 Created: 2022-01-28 Last updated: 2022-12-14Bibliographically approved

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Figge, FrankManzhynski, Siarhei

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