The Circular Transformation: How Intrapreneurship and Innovation Ecosystems Reshape Enterprises

The transition to a Circular Economy (CE) offers a vital pathway for traditional enterprises seeking to meet rising sustainability demands. In practice, many enterprises navigate this transition through hybrid models, blending circular initiatives with existing linear structures as part of an incremental evolution. Organizational complexity further shapes this progression, making internal innovation and strategic collaboration essential. This study explores how environmental awareness, intrapreneurship, and innovation ecosystems enable CE adoption within established firms. A decision tree analysis of 200 survey responses from professionals and master’s students engaged in corporate work-study programs in France reveals that employee-driven innovation is the strongest predictor of CE engagement. Focusing on traditional enterprises, where structural inertia is greater than in startups, our findings show that aligning internal capabilities with external collaboration is critical to advancing circular practices. The study offers actionable insights for business leaders and policymakers aiming to foster sustainable economic transformation.