Maastricht U., School of Business & Economics, Netherlands
The transition to a circular economy requires rethinking regulatory systems, social norms, and ingrained belief structures. Shifting from a linear “take-make-dispose” model to circular business models is crucial for achieving sustainable business transformation. While European contexts have been extensively studied, less attention has been given to the U.S., where no national circular economy policy currently exists. This research examines the emergence of circular business models in the U.S. through semi-structured interviews with companies, utilizing deductive thematic analysis and institutional work theory. We propose a “circular business institutionalization framework” that integrates institutional work insights with an ecologies of business models perspective. Our findings highlight distinct circular business models, pathways for transforming or disrupting linear approaches, and evidence of companies' normative, cognitive, and institutional efforts. The framework provides managers with actionable insights into institutional leverage points and strategic opportunities, offering practical guidance for advancing sustainability transitions.
