Sustaining Circular Innovation Under Volatile Market Conditions: The Critical Role of Industry Platforms

ABSTRACT While industry platforms are widely recognized as enablers of circular innovation, we still know little about how they evolve to scale and sustain innovation as economic conditions tighten and circular economy funding schemes become more selective. Drawing on an evolutionary platform perspective, this study examines the evolution of an agri‐tech industry platform in China using an embedded case study design. The findings show that platform evolution in circular transitions is condition‐dependent, unfolding through phases of ecosystem mobilization, expansion, and re‐calibration as regulatory, market, and financial conditions shift. The study further advances understanding of dynamic platform capabilities at the industry level, highlighting their role in shaping ecosystem‐level learning, reciprocity, and reassurance that support sustained investment in circular innovation. Finally, it reveals that platforms may function as temporary scaffolds, becoming less central as circular innovation becomes embedded in an industry ecosystem and governance becomes distributed across industry actors.