Experimentation capability for a circular economy: a practical guide

Abstract

Purpose To meet their ambitious targets for a circular economy, multinationals need to speed up their innovation efforts. This requires experimentation capability. But it is not clear what this capability entails, and how companies can build it. The purpose of this paper is to give companies guidance on how they might develop experimentation capability for the circular economy. Design/methodology/approach We conduct in-depth interviews with innovators in frontrunner multinationals, H&M, IKEA and Philips. We use the Gioia method to analyse our data. Findings This article identifies novel institutional, strategic, and operational actions that build experimentation capability for a circular economy. Practical implications The identified actions help innovation managers experiment and speed up their innovation efforts for a circular economy. Social implications To reverse environmental degradation, multinationals need to transform their dominant linear take-make-waste business models. This research provides actions that help them organize this transformation. Originality/value This article is based on extensive research with leading multinationals and reveals novel insights on how to innovate for a circular economy.