Although all the companies surveyed were manufacturing companies from Lithuania, she believes the study results can be adapted to different organisations and markets, at least in the EU context.
However, she highlights the fact that the survey was carried out with companies operating in traditional sectors, such as textiles, food production, and wood. This means that other markets or industries (for example, high-tech) will need to take into account different raw material flows, regulations and customer expectations.
“Also, the study looked at medium-sized and larger companies, so the findings may be less applicable to small companies or start-ups that lack resources and expertise,” adds a KTU researcher.
Strategies for circular success – zooming-in and zooming-out
In the study, KTU researchers applied zooming-in and zooming-out perspectives towards dynamic capabilities of the companies.
“Zooming-in and zooming-out are metaphors for strategic thinking that emphasise the dynamic nature of the environment and the fact that companies need to constantly monitor, strengthen and manage external and internal resources,” explains Dagilienė.
Zooming-out capabilities focus on monitoring the external environment and discovering opportunities, i.e. being able to engage in companies’ product supply chains and cross-sectoral networks, forms of (long-term) cooperation, anticipating and adapting in advance to future environmental regulations. Zooming-in capabilities include the organisation and management of internal business processes and the continuous improvement of competencies and knowledge.
The researchers claim that the “zooming-out” capabilities positively influence production design and the “zooming-in” ones positively influence waste management. This was revealed in the research, too.
“Most of the surveyed companies made production for other large European companies, zooming-out type capabilities (reacting to future changes, meeting focal companies’ expectations) therefore appeared to be an important dynamic characteristic. At the same time, specific knowledge and skills (zooming-in) are needed while implementing technological solutions, e.g. how to have more sustainable packaging solutions,” explains Dagilienė.
The capability to integrate financial resources depends on external financial support, green credit schemes, tax policies, etc. It is important that manufacturing companies are able to take advantage of the financial opportunities for a green economy transition. Overall, the paper develops the idea of turning disadvantages into opportunities, which is why the dynamic capabilities perspective is applied.
Although the study involved manufacturing companies, which often operate in a business-to-business context, the scientists emphasised the role of consumer acceptance of green/circular products. Zooming-out capability to dynamically assess consumer needs in the market is significant in the circular transformation.
The study “Impact of organisational capabilities on the implementation of circularity-oriented activities” was published in Business Strategy and the Environment and can be accessed here.
This is part of the project “Managing paradoxical tensions and developing organizational capabilities in a circular economy (CEPOC)” (2023-2026), S-MIP-23-53, LMTLT
