Transition towards circular economy: Exploiting open innovation for circular product development
Product innovation is a relevant aspect to consider when transitioning towards a circular economy. However, product innovation encounters several barriers that must be overcome. This article explores how companies exploit open innovation practices to overcome barriers while developing circular produ...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-03-01
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| Series: | Journal of Innovation & Knowledge |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2444569X25000198 |
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| author | Juan I. Dorrego-Viera Andrea Urbinati Valentina Lazzarotti |
| author_facet | Juan I. Dorrego-Viera Andrea Urbinati Valentina Lazzarotti |
| author_sort | Juan I. Dorrego-Viera |
| collection | DOAJ |
| description | Product innovation is a relevant aspect to consider when transitioning towards a circular economy. However, product innovation encounters several barriers that must be overcome. This article explores how companies exploit open innovation practices to overcome barriers while developing circular products. To address this research gap, the study employs a multiple case-study approach of four companies in the manufacturing sector. Two of them operate in European industrialized regions, and other two operate in less developed regions of South America, emphasizing the need for context-specific approaches to circular economy implementation and circular product development. Our results show that, among other barriers, technical ones, including material quality concerns and a lack of skills, represent significant obstacles in both contexts. In addition, among the open innovation practices, the inbound ones, such as sourcing external knowledge and ideas, support companies to overcome these technical challenges, by leading to more innovative and higher-quality products, enhanced reputation, collaboration, and cost reduction. Consumer co-creation is especially crucial for stakeholder engagement and aligning practices with sustainability goals. Finally, collaboration with universities mostly benefits highly industrialized regions and is recommended for acquiring essential capabilities for successful circular product development. From a theoretical perspective, our study contributes to emphasize the relationships between circular economy and open innovation, as well as region-specific circular economy challenges. From a managerial perspective, we show how inbound open innovation practices can aid circular economy implementation, fostering external knowledge and innovation. |
| format | Article |
| id | doaj-art-81da72fc2a5f4073ae70a8957a41a7fb |
| institution | Kabale University |
| issn | 2444-569X |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Innovation & Knowledge |
| spelling | doaj-art-81da72fc2a5f4073ae70a8957a41a7fb2025-02-11T04:35:18ZengElsevierJournal of Innovation & Knowledge2444-569X2025-03-01102100668Transition towards circular economy: Exploiting open innovation for circular product developmentJuan I. Dorrego-Viera0Andrea Urbinati1Valentina Lazzarotti2Johannes Kepler University Linz, Institute for Integrated Quality Design (IQD), Linz, Austria.; Johannes Kepler University Linz, Institute of Integrated Quality Design (IQD), Linz, Austria; Corresponding author at: LIUC Università Cattaneo, School of Industrial Engineering, Varese, Italy.Johannes Kepler University Linz, Institute for Integrated Quality Design (IQD), Linz, Austria.Johannes Kepler University Linz, Institute for Integrated Quality Design (IQD), Linz, Austria.Product innovation is a relevant aspect to consider when transitioning towards a circular economy. However, product innovation encounters several barriers that must be overcome. This article explores how companies exploit open innovation practices to overcome barriers while developing circular products. To address this research gap, the study employs a multiple case-study approach of four companies in the manufacturing sector. Two of them operate in European industrialized regions, and other two operate in less developed regions of South America, emphasizing the need for context-specific approaches to circular economy implementation and circular product development. Our results show that, among other barriers, technical ones, including material quality concerns and a lack of skills, represent significant obstacles in both contexts. In addition, among the open innovation practices, the inbound ones, such as sourcing external knowledge and ideas, support companies to overcome these technical challenges, by leading to more innovative and higher-quality products, enhanced reputation, collaboration, and cost reduction. Consumer co-creation is especially crucial for stakeholder engagement and aligning practices with sustainability goals. Finally, collaboration with universities mostly benefits highly industrialized regions and is recommended for acquiring essential capabilities for successful circular product development. From a theoretical perspective, our study contributes to emphasize the relationships between circular economy and open innovation, as well as region-specific circular economy challenges. From a managerial perspective, we show how inbound open innovation practices can aid circular economy implementation, fostering external knowledge and innovation.http://www.sciencedirect.com/science/article/pii/S2444569X25000198M21—Business administration and business economicsMarketingAccountingPersonnel economics/ business economicsO36—Economic development, innovation, technological change, and growth/ open innovationQ55—Agricultural and natural resource economics |
| spellingShingle | Juan I. Dorrego-Viera Andrea Urbinati Valentina Lazzarotti Transition towards circular economy: Exploiting open innovation for circular product development Journal of Innovation & Knowledge M21—Business administration and business economics Marketing Accounting Personnel economics/ business economics O36—Economic development, innovation, technological change, and growth/ open innovation Q55—Agricultural and natural resource economics |
| title | Transition towards circular economy: Exploiting open innovation for circular product development |
| title_full | Transition towards circular economy: Exploiting open innovation for circular product development |
| title_fullStr | Transition towards circular economy: Exploiting open innovation for circular product development |
| title_full_unstemmed | Transition towards circular economy: Exploiting open innovation for circular product development |
| title_short | Transition towards circular economy: Exploiting open innovation for circular product development |
| title_sort | transition towards circular economy exploiting open innovation for circular product development |
| topic | M21—Business administration and business economics Marketing Accounting Personnel economics/ business economics O36—Economic development, innovation, technological change, and growth/ open innovation Q55—Agricultural and natural resource economics |
| url | http://www.sciencedirect.com/science/article/pii/S2444569X25000198 |
| work_keys_str_mv | AT juanidorregoviera transitiontowardscirculareconomyexploitingopeninnovationforcircularproductdevelopment AT andreaurbinati transitiontowardscirculareconomyexploitingopeninnovationforcircularproductdevelopment AT valentinalazzarotti transitiontowardscirculareconomyexploitingopeninnovationforcircularproductdevelopment |