The complex and transformative nature of circular supply chains: The role of dynamic capabilities, microfoundations, and digital technologies

The prevailing linear economic model faces growing sustainability challenges, prompting the urgent transition toward a circular economy. This shift requires the transformation of linear supply chains into circular supply chains that adopt regenerative and restorative strategies such as reuse, repair, remanufacturing, and recycling. However, they introduce significant managerial complexities due to augmented stakeholder networks, novel interdependencies, reverse flow uncertainties, and the need for new governance structures. Furthermore, operating in turbulent environments demands enhanced resilience and novel dynamic capabilities to navigate disruptions and evolve effectively. This doctoral research is grounded in the literature on circular supply chains, yet advances it by engaging with two complementary research streams. On one side, focusing on the emerging transformative supply chain management, it explores how traditional supply chains can be effectively transformed into new configurations like circular supply chains; on the other, it examines how the augmented complexity of circular supply chains can be governed toward high-performing and resilient configurations under increasing uncertainty and turbulence. Addressing these challenges requires developing novel theoretical frameworks. Accordingly, this research thesis introduces and explores such novel theoretical models through a multi-method research design including agent-based simulations, multiple case studies, and a Delphi study. Modern supply chains are conceptualized as social–ecological systems that successfully transform towards circular and resilient configurations through the supply chain transformative capabilities i.e., a novel set of supply chain dynamic capabilities comprising triggering, envisioning, navigating, and stabilizing capabilities, underpinned by an empirically identified and validated set of microfoundations. In this regard, empirical results permit us to explore the enabling role of digital technologies (e.g., Additive Manufacturing, AI, Big Data, Blockchain, Digital Twin) on the development of supply chain transformative capabilities. The augmented complexity of circular supply chain archetypes significantly affects the performance of circular supply chains and can be effectively governed through the design of purposeful coordination mechanisms. Specifically, our simulation-based results reveal that coordination effectiveness depends on the circular supply chain archetype: local collaboration enhances closed-loop performance, whereas global collaboration benefits open- and hybrid-loop systems. The dynamic nature of circular supply chains i.e., how the underlying structural archetypes evolve over time, significantly affects the ability to preserve the continuity of circular functions from disruptions by absorbing them and restoring original or more favorable resource loop structures, namely their resilience. Specifically, our simulation-based results show that the influence of evolutionary mechanisms on the resilience of circular economy networks varies with network topology and disruption type, underscoring the need for context-specific strategies. The research advances theory by exploring the social-ecological supply chain paradigm, extending dynamic capability theory to supply chain transformative capabilities, and deepening understanding of governance of their complexity through the lens of complex adaptive systems. Practically, it provides actionable insights for managers and policymakers to design more sustainable, resilient, and circular supply chain ecosystems.