Unleashing economic growth through circular business models and innovation networks: a configurational analysis

This study investigates the impact of combining circular business models and innovation networks on economic growth. Using data collected in 2017 through a collaboration between Legambiente and the University of Padova, we empirically examine 47 Italian firms engaged in circular business practices. Employing fuzzy set qualitative comparative analysis (fsQCA), we explore various pathways to economic growth. Surprisingly, having an extensive collaboration network or relying on in-depth partnerships isn't always essential for success; in some cases, they are ineffective. Additionally, we find that circular practices can be effective when adopted independently, with a trade-off between reuse/recycling and selling waste to other companies. This study offers practical insights for managers in developing a thriving circular economy business ecosystem, emphasising the interplay between circular business practices and innovation networks. It contributes to moving beyond circular stagnation and utopian ideals, providing actionable recommendations for businesses aiming to achieve economic growth through circular strategies.