Role of Open Innovation in Accelerating Circular Economy Adoption: A Literature-Based Perspective

Muhammad Jamshaid Bajwa, Sumera Aslam, Farzana Akmal Memon and Muhammad Annan

Sustainable Business and Society in Emerging Economies, 2025, vol. 7, issue 2, 355-366

Abstract: Purpose: This study examines how open innovation can accelerate the adoption of circular economy (CE) principles by enhancing knowledge flows, co-creation, and stakeholder collaboration. It explores how these mechanisms help overcome technological and organizational barriers in transitioning from linear to circular systems.Methodology: The systematic literature review was carried out by utilizing the Scopus and Web of Science databases.From an initial pool of 686 studies, 22 relevant articles were analyzed through bibliometric and content analysis to assess the role of open innovation in CE adoption across micro, meso, and macro levels.Findings: The review highlights that research at the intersection of open innovation and CE remains in an early stage. Co-creation and stakeholder collaboration dominate as key enablers, particularly at the micro level. Open innovation processes—both inbound and outbound—support knowledge exchange, risk reduction, and circular business models, though challenges such as stakeholder coordination and intellectual property concerns persist.Implications/Originality/Value: The study contributes to emerging scholarship by clarifying how open innovation fosters CE adoption. It offers practical insights for managers and policymakers on leveraging co-creation and collaboration to advance sustainable business models and identifies research gaps in theory-driven and empirical applications.

Keywords: Circular Oriented Innovation; Circular Economy; Sustainability; Open Innovation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:src:sbseec:v:7:y:2025:i:2:p:355-366

DOI: 10.26710/sbsee.v7i2.3400

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