Transition Thinking for Circular Agrobusiness Innovation - A Study Case on Agroindustry Company at Sumatera Island, Indonesia

Abstract

The Circular Economy (CE) transition toward sustainable business needs a fundamental change in business culture, production process and resource management. The business sector must understand their own capacity to overcome business challenges and put the CE concept as a long-term investment that requires continuous commitment. This research aims to analyze and evaluate the business transition to CE adoption to obtain a sustainable purpose. This qualitative research with narrative analysis method focuses on identifying corporate CE management transition that comprises innovation in business process, strategic integration, and transformation process. The socio-technical transition theory is used as a research framework to identify the technical aspects of CE implementation and further a deeper analysis of social dimension amidst the perspective of people s interaction. The data collection, analysis, and validation approach, which included FGD, semi-structured interviews and documentary analysis, examined the nuances of the actor-related strategies and institutional enabling processes of CE transition in the study case company. The research also gained valuable insight into seeing the internal dynamics of company management utilize their influence in managing resources aligned with CE principles through open innovation and people interaction. The outcome of this study showed that company s shift towards the circular business could be achieved through an organizational learning process, with particular attention to strengthening internal transformation by actively involving employees. The open innovation approach is an excellent way to utilize a collaborative culture by combining existing technologies that could drive innovation in the industry.