The Impact of Managers and Network Interactions on the Integration of Circularity in Business Strategy

Abstract

Integrating circularity in business strategy is difficult to achieve for companies as it requires impactful changes in core business processes. While research has focused on identifying key barriers, little is known about the organizational attributes that can assist businesses in integrating circularity in their strategies. The purpose of this study is to investigate the implications of organizational managers and network interactions for the integration of circularity in business strategy. Through using survey data from 627 SMEs (small- and medium-sized enterprises) in the Netherlands, this study shows that managers who interpret circularity as an opportunity can have a positive direct and indirect effect on the integration of circularity in a company’s strategy. The results furthermore highlight the importance of circular network interactions for the integration of circularity in business strategy. This article contributes to recent calls for more empirical research into the integration of circularity and offers relevant insights for companies aiming to integrate circularity.