Unveiling Circularity Black-Box: A Novel Theoretical Perspective

Purpose
Theories from various disciplines, such as Resource-Based View, Transaction Cost Economics, Institutional Theory, and Contingency Theory, are often borrowed to address supply chain issues. Researchers have applied these theories, originally designed for single-firm performance, to the complex, fragmented, and geographically dispersed nature of supply chains with overly fitted generalizations. This study seeks to establish a theory of circular supply chain by extending the concept of adaptive cycles from panarchy theory, viewed through the lens of socio-ecological perspective.

Design/methodology/approach
This study, grounded in the principles of theoretical pluralism, aims to synthesize a diverse theoretical landscape, incorporating viewpoints from General Systems Theory, Complex Adaptive Systems, and Control Theory. The fresh theoretical perspective to understand circularity in supply chains is presented through the augmentation of adaptive cycles of Panarchy Theory by incorporating the novel concept of relational panarchy within socio-ecological perspective. The metaphors from the laws of Thermodynamics and Quantum Mechanics, such as super-positioning and entanglement, are also employed to explore the conceptual horizon of circularity.

Findings
We argue that supply chain circularity can be viewed from the socio-ecological lens embedded by adaptive cycles of change. However, circularity being an open socio-ecological system makes an inherent connection with supply chain through relational panarchy. This connectivity makes it adaptive, allowing it to dissipate energy to innovate thereby reduce entropy and enhancing stability.

Research limitations/implications
This study makes a theoretical contribution by introducing a novel perspective for researchers to explore circularity from the lens of adaptive cycle within Panarchy Theory. It not only advances our understanding of circular supply chains but also fills critical gaps in the existing research fraternity, providing a holistic approach to understand the complex nature of circularity.

Managerial & Societal implications
This study has the potential to make practical contributions by examining circularity through a socio-ecological perspective and addressing managerial challenges using this new theoretical framework. It offers working professionals a unique perspective to address circularity challenges from a different angle. It offers significant societal implications, enhancing the understanding and realization of circularity from a socio-ecological viewpoint. In society, it helps people better understand the benefits of circularity and encourages more widespread use of circular practices that improve both the environment and social well-being.

Original/value
The originality of this research stems from developing a novel perspective on circular supply chains by augmenting the adaptive cycles in Panarchy Theory.

Keywords: Circularity, Adaptive Cycle, Panarchy, Socio-ecology, Novelty, Supply Chain