Dynamic capabilities for overcoming circular economy barriers

a theoretical framework proposition

Abstract

This paper aimss to develop a theoretical framework using the systematic literature review (SLR) method in order to relate the Dynamic Capabilities (DC) that can help to reduce barriers  for Circular Economy (CE) implementation s, considering its  micro level. Specifically, the aim is to present an overview of the research, identifying  barriers in the transition to the CE, the DCs needed to face these challenges, and the CE practices that can be implemented by organizations. After analyzing 106 articles, it was found that publications on CE, barriers and DC have been growing over the years, employing predominantly qualitative approaches, with Europe standing out as the continent of application of the research. In addition, 12 categories of barriers, 10 of DCs and 5 of CE practices were identified. Then, after a process of reduction and abstraction, 9 barriers (lack of consumer awareness, knowledge, R&D, qualified HR, technology, standardization; problems in product design, management and business model), 3 DCs (design and innovation, absorption and organizational) and 3 CE practices ("Rs", design and innovation and absorption) were listed to make up the theoretical framework. By understanding the research constructs, researchers can explore less-addressed barriers and DCs, enriching the research field.  In practical terms, the framework can help managers understand which DCs they need to develop or improve in order to reduce barriers that prevent the implementation of CE practices.