Transforming the Manufacturing Sector Towards Circular Economy—A Configurational Approach

ABSTRACT Despite growing awareness of—in principle—easily transferable circular economy (CE) best practices, their adoption remains limited. As scholarly discourses on CE and operations management concentrate on linear construct relations, the complex interdependence of practices and their determinants is overlooked. Using qualitative comparative analysis and the practice‐based view, this study draws attention to the benefits of a configurational research approach for better understanding contextual patterns of CE practice implementation. We identify necessary conditions (i.e., intrinsic and market‐driven motivations, social sustainability practices) and sufficient bundles of CE practices and contextual factors that relate to positive performance outcomes for electronic and nonelectronic product manufacturers. The findings highlight the need to understand CE implementation as a system that cannot be built through simple adjustments to certain parameters or single best practice solutions but by embracing analytical complexity. Trickle‐down effects of government regulation and stakeholder demands prove compelling for driving CE transformation.