Integrating Circular Economy Principles into Corporate Strategy: A Cross-Sectoral Analysis of Resource Efficiency and Competitive Advantage
DOI:
https://doi.org/10.56830/IJGMBS06202501Keywords:
Circular Economy (CE), Corporate Strategy, Resource Efficiency, Business Model Innovation, Competitive Advantage, Sustainability TransformationAbstract
With a focus on multifunctional firms, this paper aims to identify how Circular Economy (CE) concepts are being assimilated into corporate strategy for enhanced resource productivity and sustainable competitive advantage. Due to environmental policies and stakeholder pressure, businesses are transitioning from linear ‘take-make waste’ systems to more regenerative models. Based on cross-sectoral study, the paper examines the strategic impact of incorporating CE principles, including but not limited to innovation investment, supply chain redesign, and organizational culture shifts. Moreover, it describes the extensive value that early adopters can realize from cost reductions, novel revenue opportunities, market differentiator status, and enhanced investor attractiveness through CE practice adoption. In addition, external factors such as policy frameworks and changes, technological disruption alongside subsequent shifts in prevailing norms also determine the speed and scale of circular economy assimilation within industries-- something this paper seeks to explain. These findings enrich strategic management scholarships by introducing a model which illustrates the relationship between business model innovation and value creation against an uncertain economic context while responding to varied degrees of economic CE sophistication
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