CORE COMPETENCES AND CORE RESOURCES AS CATALYSTS FOR THE DESIGN OF CIRCULAR BUSINESS MODELS

Abstract

In recent decades, the resource-based view of companies has represented one of the main theoretical lenses in strategic management. It aims to address the question of how some companies persistently outperform others, mostly leveraging on core competences and resources. Nevertheless, the resource-based view of companies has been neglected by existing research analysing the micro-perspective of the circular economy, that is how companies design circular business models. This chapter takes stock of research on the micro-foundations for the design of circular business models through a resource-based view of companies. It makes the argument that a resource-based view of companies is a necessary antecedent to be addressed in circular economy studies when companies are designing a circular business model. As such, core competences and resources may act as catalysts in the design process of circular business models.