14281: Contradictions of Informal Circular Economy: A Narrative Review (session 25656)

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This study explores the intersection of the informal and circular economies, emphasizing the critical role of informal circularity in advancing socio-ecological transitions. Drawing on a narrative review of 72 studies, we identify four metanarratives that highlight complexities and contradictions of informal circularity: (1) its ambivalent outcomes, delivering significant sustainability benefits while posing challenges; (2) its reciprocal relationship with urban systems shaping and being shaped by rapid urbanization and urban poverty; (3) the paradox of marginalized actors demonstrating transformative agency through advocacy, entrepreneurship, and innovation; and (4) the interdependence and contradictions between formal and informal systems, where informal practices underpin global value chains yet face exclusion due to formalization efforts. Our findings underline the need for interdisciplinary and transdisciplinary collaboration to integrate informal circular practices into broader circular and sustainability transitions. We propose a comprehensive future research agenda bridging business and management studies, other disciplines, and non-academic stakeholders, including policymakers, practitioners, and communities.

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