Analysing Circular Transitions Beyond Single‐Use Plastics: How Do Problem‐Solving and Learning Shape Circular Business Model Strategies?

ABSTRACT The environmental and health impacts from single‐use packaging plastics (SUPPs) constitute a critical hurdle for a sustainable future. Environmentally less impactful substitutes are being developed by circular business models (CBMs), such as reusable and SUPP‐replacing products. To get rooted within a system, i.e., achieving customer acceptance and alignment with regulatory and market contexts, CBMs need to undergo transition stages. The present study investigates these transitions, in particular, the hereto underlying mechanisms of learning and solution‐trialling. Based on questionnaire‐guided interviews with 11 circular enterprises in Hong Kong, the investigation classifies applied learning and solution‐trialling mechanisms. It then assesses if companies exhibit similarities in the practice of mechanisms and whether these influence the firms' circular business strategies over time. The findings show that circular firms featuring significant correlations in the use of solution‐trialling and learning mechanisms also exhibit a notable alignment in their circular business strategies.