Circularity, Regional Prosperity, and Business Strategies. Reverse Resource Mobilization and Circular Value Capture in Platform‐Driven Eco‐Innovation

ABSTRACT

The shift to the systems of the circular economy more and more relies on the capacity of organizations to mobilize resources, coordinate the actors of the ecosystem, and derive value out of sustainability‐oriented innovation. Nonetheless, there is a dearth of empirical data describing the combined effects of institutional, technological, and collaborative processes on the process of development of capabilities that can convert the idea of a cycle of innovation into economic results. The paper discusses the role of institutional flexibility of circular innovation and platform‐based adoption of eco‐design and stakeholder data co‐creation in the mobilization of reverse resources and the following logic of circular value capture, which leads to the well‐being of the regional economy. Based on the dynamic capabilities view, the paper suggests a capability‐based model that connects ecosystem enablers to the results of circular economy. The gathered survey data were analyzed using partial least squares structural equation modeling (PLS‐SEM), which was performed based on the data collected on organizations that have implemented circular innovation initiatives. The findings suggest that institutional flexibility, adoption of eco‐design using digital platforms, and stakeholder data co‐creation have a significant empowering effect on reverse resource mobilization capability and, consequently, on the logic of circular value capture. Circular value capture also leads to the economic viability of a region. The results indicate the significance of organizational aptitudes that bring to life the circular resource flows and convert sustainability plans into economic worth. The research adds to the literature on circular economy and platform ecosystem, by showing that capability development is an intermediate that connects the relationship between ecosystem drivers and economic performance in circular innovation systems.