Short answer
Adopt a project-based organisational approach to systematically build the capabilities needed for successful circular economy integration and performance improvement.
- Field
- Sustainability
- Source
- Business Strategy and the Environment (2026)
- Method
- Quantitative research using Structural Equation Modelling (SEM).
- Sample
- 227 participants
- Evidence
- Strong effect
Employing project-based organising structures is a strategic approach that demonstrably enhances a firm's capabilities in developing and implementing circular economy principles. This sustainability research insight is drawn from a 2026 study published in Business Strategy and the Environment. Using Quantitative research using structural equation modelling (sem). with 227 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Adopt a project-based organisational approach to systematically build the capabilities needed for successful circular economy integration and performance improvement.
Project Organising Accelerates Circular Economy Firm Capabilities
Employing project-based organising structures is a strategic approach that demonstrably enhances a firm's capabilities in developing and implementing circular economy principles.
Business Strategy and the Environment · 2026
Key Findings
- 01Project organising (PO) supports the development of circular organisational routines (OR), eco-innovation capabilities (EC), strategic agility (SA), and dynamic capabilities (DC).
- 02The combined effect of these enhanced firm capabilities (FC) positively impacts both the environmental and economic performance of the firms.
Application
Design takeaway
Adopt a project-based organisational approach to systematically build the capabilities needed for successful circular economy integration and performance improvement.
How to apply
Implement project teams dedicated to specific circular initiatives, such as material recovery, product redesign for disassembly, or closed-loop supply chain development.
Project actions
- 01When planning a design project, consider how to structure it using project management principles to foster adaptability and innovation.
- 02Think about how your design choices can be supported by specific project teams focused on circularity goals.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Empirical validation of theoretical links between project organising and circular capabilities.
- +Use of a robust statistical method (SEM) for data analysis.
Limitations
The study's findings are based on a specific set of firms; results might differ in industries with less established circular economy practices. The complexity of measuring 'capabilities' can be a challenge.
Reliability & validity
The use of SEM and a sample size of 227 participants contributes to the reliability and validity of the findings. However, the study's validity could be further strengthened by triangulation with qualitative data or longitudinal studies.
Think critically
To what extent can project organising alone drive circularity, or does it require concurrent shifts in broader organisational culture and leadership?
Design Principles
"Structure operations around projects to cultivate dynamic capabilities for sustainable innovation."
For businesses aiming to transition towards a circular economy, understanding how to structure their operations is crucial. This research highlights that a deliberate project-based approach can foster the development of essential capabilities, leading to improved environmental and economic performance.
What This Means for Your Design
Using projects to manage work helps companies get better at being circular, leading to better environmental and money results.
How to use in your project
- 1.Reference this study when discussing how project-based approaches can support the development of sustainable design capabilities in your design project.
Add to My Project
Quick Cite
Paragraph starter
This research empirically demonstrates that adopting project organising (PO) as a deliberate strategy significantly enhances a firm's circular capabilities, including organisational routines, eco-innovation, strategic agility, and dynamic capabilities. These enhanced capabilities, in turn, lead to improved environmental and economic performance, suggesting that project-based structures are a key enabler for firms transitioning to a circular economy.
Source
Business Strategy and the Environment
Organising for Circularity: An Empirical Analysis of Project Organising and the Development of Circular Economy Firm Capabilities
journal · 2026
View sourceQuestions About This Research
- What does the research say about project organising accelerates circular economy firm capabilities?
- Adopt a project-based organisational approach to systematically build the capabilities needed for successful circular economy integration and performance improvement. Evidence: Business Strategy and the Environment (2026).
- Why does "Project Organising Accelerates Circular Economy Firm Capabilities" matter for design?
- For businesses aiming to transition towards a circular economy, understanding how to structure their operations is crucial. This research highlights that a deliberate project-based approach can foster the development of essential capabilities, leading to improved environmental and economic performance.
- How can designers apply this research?
- Adopt a project-based organisational approach to systematically build the capabilities needed for successful circular economy integration and performance improvement.
- What were the main findings?
- Project organising (PO) supports the development of circular organisational routines (OR), eco-innovation capabilities (EC), strategic agility (SA), and dynamic capabilities (DC).. The combined effect of these enhanced firm capabilities (FC) positively impacts both the environmental and economic performance of the firms.
- What research method was used?
- Quantitative research using Structural Equation Modelling (SEM). with 227 participants.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2026 journal from Business Strategy and the Environment.
- What should I do differently in my next project?
- Implement project teams dedicated to specific circular initiatives, such as material recovery, product redesign for disassembly, or closed-loop supply chain development.
- What are the limitations?
- The study focuses on firms already operating within a circular economy framework, so findings may not directly translate to firms in early stages of transition. The reliance on self-reported data in surveys can introduce potential biases.