Operationalising circular economy through social innovation: a systems thinking‐based model for sustainability transitions

Souresh Cornet, Saswat Barpanda and Marc-Antoine Diego Guidi ()
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Souresh Cornet: Amrita school for sustainable futures
Saswat Barpanda: Goa Institute of Management
Marc-Antoine Diego Guidi: IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]

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Abstract: Social innovation (SI) is increasingly recognised as an important enabler of circular economy (CE) transitions. However, existing research offers limited explanation of the processes through which SI operationalises CE principles, as SI and CE have largely evolved in parallel and existing conceptualisations remain predominantly descriptive. Addressing this gap, this study adopts a systems thinking perspective to examine how SI processes enact CE principles through a systematic scoping review of 97 peer‐reviewed articles. The analysis identifies four interrelated systemic dynamics through which SI operationalises CE principles. Rather than operating as discrete stages, they interact through interrelated reinforcing feedbacks and dynamics that enable institutional legitimisation, participatory governance and production, and community empowerment. Building on these findings, the study develops a systems‐based conceptual model explaining how SI processes generate circular outcomes. By focusing on explaining the mechanisms linking SI and CE, this review advances the theoretical integration of SI and CE scholarship and demonstrates the value of systems thinking for understanding sustainability transitions. The proposed framework provides a foundation for future empirical research on the systemic processes that underpin socially embedded CE towards sustainability transitions.

Keywords: Systems thinking; Sustainable development; Sustainability transitions; Social innovation; Process dynamics; Circular economy (search for similar items in EconPapers)
Date: 2026
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Published in Sustainable Development, In press, ⟨10.1002/sd.71628⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05770733

DOI: 10.1002/sd.71628

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