Cultivating a sustainable and circular economy: The role of institutional logics in manufacturing companies

This paper aims to explore the institutional logic of manufacturing companies in the transition to a sustainable and circular economy. The paper follows abductive reasoning and uses a qualitative methodology encompassing primary data collected from 16 interviews with manufacturing companies and supplementary data from web-scan analysis, observation and 15 interviews with public institutions and environmental experts. We identify four specific co-existing logics of the circular economy of manufacturing companies and explain operating conditions of each logic. Compliance and commercial logics reflect instrumental thinking, while value chain and value creation logics are more based on integrative thinking. To illustrate opposites of instrumental thinking and integrative thinking, we propose an analytical framework of circular logics, that consists of three pillars, that is homogeneity vs heterogeneity, techno-centric vs system-centric perspectives, compliance vs ethical responsibility. The originality also relates to the prioritization among different logics. •Four CE logics of manufacturing companies discovered.•Compliance and commercial logics reflect instrumental thinking, value chain and value creation logics are more based on integrative thinking.•We propose an analytical framework of CE logics that consists of three pillars.•Based on attributions of negative and positive factors, managers actually can prioritize integrative CE logics.