Sustainability Transitions and Industrial Transformation: Multi-Sector Dynamics and Policy Perspectives | 2026
Authors: Ullern E.F.; Damman S.
DOI: 10.1007/978-981-95-4893-4_10
Journal: Sustainability Transitions and Industrial Transformation: Multi-Sector Dynamics and Policy Perspectives
Year: 2026
Publisher: Springer Nature
Document Type: Book chapter
Open Access: All Open Access; Gold Open Access
Cited by: 0
This chapter addresses the challenges incumbent firms face in transitioning to a circular economy (CE) through the lens of paradox theory. Drawing on a longitudinal qualitative case study of Flokk, a European furniture manufacturer, we explore how incumbents navigate tensions in CE transitions. Flokk experimented with new business models, utilizing recycled materials and product-as-a-service approaches, which required new value chains. We find that Flokk adopts five key strategies: i) business model innovation, ii) engagement in public policy processes, iii) strategic acquisitions, iv) external collaborations, and v) cross-sector R&D partnerships. These strategies foster interactions across sectors through novel forms of collaboration. Our analysis challenges existing typologies by offering a pluralized view of incumbents, highlighting the contradictory yet interrelated aspects in transition processes. Against this backdrop, we argue that paradox theory provides a valuable perspective for understanding the dynamics of CE transitions. © The Editor(s) (if applicable) and The Author(s) 2026.
Economics; Information systems; Mergers and acquisitions; Public policy; Business model innovation; Circular economy; Materials and products; New business models; Qualitative case studies; Recycled materials; Recycled products; Sustainability transition; Through the lens; Value chains; Circular economy