Knowledge‐Based Institutional Work in the Circular Economy

ABSTRACT The circular economy ( CE ) literature has primarily focused on incremental additions to the linear economy, whereas understanding of institutional change towards the CE remains limited. This study explores knowledge‐based institutional work in small born‐circular businesses that possess advanced CE applications and fundamentally aim to drive change. Drawing on 28 interviews and extensive secondary data from the clothing and apparel industry in Northwest Europe, the study identifies three forms of knowledge‐based institutional work: operational, engagement‐based and altruistic institutional work. Creating CE solutions under operational institutional work creates the foundation of the other identified forms of institutional work, whereas acknowledgement of the businesses' CE expertise enables their further development. The study concludes that, in the CE , (1) knowledge intertwines institutional work and business operations, (2) knowledge‐based institutional work blurs the boundaries between businesses and their surroundings and (3) views of knowledge help explain the mechanisms and motivations underlying institutional work.