Short answer
Adopt a phased approach to embedding circular economy principles, starting with mindset shifts, then operational changes, and finally, systemic integration.
- Field
- Sustainability
- Source
- British Journal of Management (2025)
- Method
- Comparative longitudinal case study
- Evidence
- Strong effect
Manufacturing SMEs can systematically develop circular economy capabilities through a progressive, three-stage model involving cognitive realignment, structural reconfiguration, and institutionalized evolution. This sustainability research insight is drawn from a 2025 study published in British Journal of Management. Using Comparative longitudinal case study, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Adopt a phased approach to embedding circular economy principles, starting with mindset shifts, then operational changes, and finally, systemic integration.
Three-Stage Model Guides SMEs Towards Circular Economy Capabilities for Net-Zero Goals
Manufacturing SMEs can systematically develop circular economy capabilities through a progressive, three-stage model involving cognitive realignment, structural reconfiguration, and institutionalized evolution.
British Journal of Management · 2025
Key Findings
- 01Circular economy (CE) capability development in SMEs is a dynamic and iterative process, not a linear or static one.
- 02SMEs continuously adapt and refine their CE capabilities in response to evolving environmental, market, and regulatory demands.
- 03The development aligns with dynamic capability theory's dimensions: sensing, seizing, and transforming.
- 04A three-stage progressive model (cognitive realignment, structural reconfiguration, institutionalized evolution) effectively guides this development.
Application
Design takeaway
Adopt a phased approach to embedding circular economy principles, starting with mindset shifts, then operational changes, and finally, systemic integration.
How to apply
Map your organization's current state against the three stages (cognitive, structural, institutionalized) and identify specific actions needed to advance to the next stage in your circular economy journey.
Project actions
- 01When designing a product or system, consider how it fits into a circular economy from the beginning.
- 02Research how different materials can be reused, repaired, or recycled to minimize waste.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a theoretical and practical model for CE capability development.
- +Integrates dynamic capability theory with sustainability goals.
Limitations
The model may need adaptation for different types of manufacturing or varying scales of SMEs.
Reliability & validity
The longitudinal case study approach provides depth and context, but generalizability may be limited. Triangulation of data from multiple sources within the SMEs would enhance validity.
Think critically
To what extent can this model be universally applied across all manufacturing sectors, and what external factors might accelerate or hinder progress through these stages?
Design Principles
"Progressive capability development for sustainability requires iterative adaptation and strategic alignment with dynamic market and environmental forces."
This research offers a practical framework for small and medium-sized enterprises (SMEs) to build the necessary capabilities for adopting circular economy principles. By understanding these stages, businesses can strategically plan their transition towards more sustainable operations and contribute to net-zero targets.
What This Means for Your Design
Small and medium-sized manufacturing companies can become more environmentally friendly by following a three-step plan: first changing how they think about resources, then changing how their business is set up, and finally making these changes a permanent part of how they operate.
How to use in your project
- 1.Use the three-stage model as a framework to analyze the sustainability efforts of a chosen company or product.
- 2.Discuss how a design project could help an SME move from one stage of CE capability development to the next.
Add to My Project
Quick Cite
Paragraph starter
This research highlights a progressive, three-stage model for developing circular economy capabilities in manufacturing SMEs, comprising cognitive realignment, structural reconfiguration, and institutionalized evolution. This iterative process allows businesses to adapt to changing demands and align with net-zero ambitions, offering a valuable framework for integrating sustainability into design and operational strategies.
Source
British Journal of Management
Manufacturing SMEs Leveraging a Progressive Model for Circular Economy Capability Development to Catalyse Sustainable Commitment
journal · 2025
View sourceQuestions About This Research
- What does the research say about three-stage model guides smes towards circular economy capabilities for net-zero goals?
- Adopt a phased approach to embedding circular economy principles, starting with mindset shifts, then operational changes, and finally, systemic integration. Evidence: British Journal of Management (2025).
- Why does "Three-Stage Model Guides SMEs Towards Circular Economy Capabilities for Net-Zero Goals" matter for design?
- This research offers a practical framework for small and medium-sized enterprises (SMEs) to build the necessary capabilities for adopting circular economy principles. By understanding these stages, businesses can strategically plan their transition towards more sustainable operations and contribute to net-zero targets.
- How can designers apply this research?
- Adopt a phased approach to embedding circular economy principles, starting with mindset shifts, then operational changes, and finally, systemic integration.
- What were the main findings?
- Circular economy (CE) capability development in SMEs is a dynamic and iterative process, not a linear or static one.. SMEs continuously adapt and refine their CE capabilities in response to evolving environmental, market, and regulatory demands.. The development aligns with dynamic capability theory's dimensions: sensing, seizing, and transforming.. A three-stage progressive model (cognitive realignment, structural reconfiguration, institutionalized evolution) effectively guides this development.
- What research method was used?
- Comparative longitudinal case study.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2025 journal from British Journal of Management.
- What should I do differently in my next project?
- Map your organization's current state against the three stages (cognitive, structural, institutionalized) and identify specific actions needed to advance to the next stage in your circular economy journey.
- What are the limitations?
- The study's findings are based on case studies, and the specific context of each SME may influence the applicability of the model.