Dynamic Capabilities for Circular Economy Business Models

This chapter explores the role of dynamic capabilities in implementing circular economy business models. It defines dynamic capabilities and their core characteristics, then analyzes their key dimensions—sensing, seizing, and reconfiguring. The chapter highlights the significance of these capabilities for the circular economy, showing how they facilitate firms to innovate, adapt, and build sustainable competitive advantage. It reviews existing research to demonstrate how dynamic capabilities enable firms to transition to circular strategies, manage resource flows, and reconfigure their operations for sustainable value creation, ultimately supporting the successful adoption of circular economy business models.