Navigating circular economy adoption: a service ecosystem perspective

Purpose – This article develops a novel conceptual framework to explain the processes facilitating a system-wide transition towards the circular economy (CE). The framework aims to provide CE scholars, practitioners, and policymakers with a deeper understanding of how to navigate the complex government-led initiatives aiming to facilitate a large-scale transition from a linear to a circular economy. Design/methodology/approach – The framework is developed from a review of scholarly research on circular service ecosystems (CSEs) and service ecosystem dynamics to identify and conceptualize the processes facilitating CE adoption. This framework is illustrated using the example of Australian government initiatives aimed at reducing food waste. Findings – The Circular Service Ecosystem Adoption framework and illustrative case identify the key processes that facilitate CE adoption. Specifically, the framework shows how CSEs evolve through dynamic states (from reproducing a linear economy paradigm to transitioning to a circular economy paradigm). CSE adoption is facilitated by mobilizing driving processes of evolution towards CSE and managing its inhibitors. Originality/value – An understanding of CE adoption is advanced by unpacking the role of service ecosystems and their dynamics. The framework illustrates how CE adoption occurs through a dynamic, evolutionary process underscored by a shift from a linear to a circular economy paradigm in the service ecosystem. The role of government initiatives is emphasized as a catalyst, facilitating grounded and scalable impact.