Supply chain transformative capabilities and their microfoundations for circular economy transition: A qualitative study in Made in Italy sectors

Abstract In today's rapidly evolving landscape, supply chains must develop specific dynamic capabilities for initiating and successfully governing their transformations toward new configurations to withstand pressures arising from competitions and global changes. Differently from dynamic capabilities that enable adaptation, supply chain transformative capabilities include four core dimensions: triggering, envisioning, navigating, and stabilizing capabilities. By using a multiple‐case study approach involving six Italian companies related to fashion and furniture sectors, we investigate these concepts and identify the microfoundations of supply chain transformative capabilities for circularity. They are classified with reference to individuals, processes, and structures. Our findings illustrate how supply chains can facilitate and effectively govern their circular transformation by developing the transformative capabilities and their microfoundations. This paper provides valuable theoretical insights and managerial perspectives, advancing the concept of transformative supply chain management.