DOI: 10.1002/bse.71607 ISSN: 0964-4733

The Circular Economy—A New Resilience Paradigm?

Julian Kirchherr, Felix Carl Schultz

ABSTRACT

The circular economy (CE) has traditionally been positioned as a central instrument of the sustainability paradigm. Yet escalating geopolitical volatility and supply chain fragility have elevated resilience to a parallel strategic imperative, and the conceptual integration of CE and resilience remains underexplored. This article bridges this gap by reconceptualizing CE as a foundational instrument for (systemic) resilience. We advance eight theoretically grounded propositions specifying how core CE strategies (i.e., narrowing, slowing, and closing loops) can foster resilience across three nested levels: macro (socioeconomic systems), meso (territorial ecosystems and supply chains), and micro (organizations and products). A nested‐level proposition specifies the coupling between these levels and shows that cross‐level cascades may be reinforcing or countervailing. We argue that CE's future value lies in securing long‐term system continuity under exogenous shocks. By positioning CE as an instrument through which a resilience paradigm can be operationalized alongside sustainability, i.e., a paradigmatic evolution rather than a replacement, we offer a theoretical trajectory and research agenda for scholars, practitioners, and policymakers navigating an increasingly volatile global context.