From Barriers to Enablers: The Role of Organizational Learning in Transitioning SMEs into the Circular Economy

Abstract

To contribute to small and medium enterprises (SMEs) sustainable transition into the circular economy, the study proposes the activation of organizational learning (OL) processes – denoted here as multi-level knowledge creation, transfer, and retention processes – as a key phase in introducing circular business models (CBMs) at SME and supply chain (SC) level. The research employs a mixed-method approach, using the focus group methodology to identify contextual elements impacting on CBM-related OL processes, and a survey-based evaluation to single out the most frequently used OL processes inside Italian construction SMEs. As main result, a CBM-oriented OL multi-level model offers a fine-grained understanding of contextual elements acting mutually as barriers and drivers for OL processes, as possible OL dynamics among them. The multi-level culture construct – composed of external stakeholders’, SC stakeholders’, and organizational culture – identify the key element to activate CBM-oriented OL processes. Main implications are related to the identification of cultural, structural, regulatory, and process contextual elements across the external, SC, and organizational levels, and their interrelation with applicable intraorganizational and interorganizational learning processes. The proposed model would contribute to an improved implementation of transitioning into the circular economy utilizing sustainable business models in the construction SMEs.

A review of entrepreneurship and circular economy research: State of the art and future directions

“…According to Vihma and Moora (2020), to perform successfully circular design capacity and capability, critical dimensions for Romanian SMEs are relevant strategy and planning, network integration, learning process, and owners and managers' leadership. Regarding CBM‐related organisational learning, Scipioni et al (2021) identified the elements of the contextual factor that influence this process and evaluated the most frequent processes in Italian SMEs in the construction sector. Contextual factors, specifically cultural, regulatory, structural, and process factors, can be considered both drivers and barriers and are presented in three dimensions—external environment, supply chain, and SME.…”

The contribution of organizational learning and green human resource management practices to the circular economy: a relational analysis – Part I

“…The current study can be seen as a continuation of the literature on the construction of theoretical frameworks based on a mix of well-known RBV theory (Arulrajah & Opatha, 2016) and OL theory (Scipioni, Russ, & Niccolini, 2021). Despite the fact that both theories have been thoroughly explored, the authors hope to contribute to the field by linking the structures from both theories in this work.…”

The contribution of organizational learning and green human resource management practices to the circular economy: a relational analysis – evidence from manufacturing SMEs (part II)

“…The current study can be considered as a continuation of previous research on the development of theoretical frameworks based on a combination of the well-known resource-based perspective theory (Arulrajah, Opatha & Nawaratne, 2015) and organizational learning theory (Scipioni, Russ & Niccolini, 2021). This can also be seen as a response to the request for a more empirical study on SMEs' long-term success that takes into account the circumstances of developing countries.…”