📄 Abstract
Although digital technologies are broadly considered the key enabler for faster circular economy (CE) transitions, a wealth of evidence has emerged since 2024 that digital circular initiatives often do not deliver the expected outcomes, even when the technology behind the sensors, platform or the analytics is technically feasible. This concept paper proposes that the real challenge in digital CE transitions isn't the technology, but the organization and people involved. Based on secondary peer-reviewed literature and reports from OECD and WEF, the paper brings together three theoretical perspectives: the dynamic capabilities theory, the organizational culture theory and behavioural economics, and presents them in a conceptual framework that explores the link between Organizational Capabilities, Digital CE Adoption, and Circular Viability. The framework places the dynamic capabilities (sensing, seizing, and transforming) as the means of using digital tools to achieve circular results and organizational culture and behavioural/cognitive factors as enabling or constraining conditions that enable the use of these capabilities. It presents a discussion of the empirical and conceptual contributions that have been made to the concept of capability maps, digital-enabled dynamic capabilities, organizational culture obstacles to the digital transformation, and behavioural/cognitive obstacles to CE adoption, and draws managerial implications and a research agenda forward from these. The analysis indicates that there is a need for intentional capability-building, cultural adaptability and debiasing routines, in addition to technological investment, to close the digital CE performance gap.
🏷️ Keywords
📚 How to Cite:
Sourasis Chakraborty , ORGANIZATIONAL CAPABILITIES FOR DIGITAL CIRCULAR ECONOMY TRANSITIONS: A CONCEPTUAL PERSPECTIVE , Volume 13 , Issue 7, July 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) , Pages: 291 - 297 ,