Unravelling Challenges to Cascading Circularity in the Textile and Clothing Industry: A Combined Paradox-Cascade Chain Perspective

Cascading plays a critical role in preserving the value of products and materials in circular economy (CE) practices, yet its operationalization remains complex and poorly understood. In practice, the sequential operationalization of circular business models (CBMs) creates interdependent and often conflicting demands across processes, structures, and stakeholder priorities. These conditions give rise to paradoxical tensions (PTs) that can constrain effective cascading. However, existing research offers limited insight into how such tensions emerge and, more importantly, how they influence cascading operations across interconnected CE loops. To address this gap, this paper investigates how PTs influence cascading in the textile and clothing (T&C) industry. The study, guided by a combined perspective of paradox and cascade chain theories, is based on semi-structured interviews with 26 actors in the T&C sector. The findings identify four PT categories: loop prioritization tensions, organizational and structural coordination tensions, socio-ethical tensions, and spatial frictions in circular resource cascades. Building on this analysis, the study further examines the underlying challenges that give rise to these tensions and links them to four key cascading principles. Finally, the study maps how these challenges disrupt the cascade chain across inner and outer CE loops. The findings highlight the need for firms to strengthen internal capabilities and develop strategic partnerships to effectively navigate PTs, while policymakers can play a critical role in enabling cascading by aligning regulations, harmonizing fiscal instruments, and expanding infrastructure to support effective cascading in the T&C sector.