Circling the Archetype: Tensions Limiting the Transformation to a Circular Economy

Journal article, 2026

This research examines key tensions and the archetypal paradox that prevent the transformation to a circular economy (CE) across individual, organizational, and systems levels, problematizing CE assumptions. Tension manifestations are analyzed using a qualitative case study across eight diverse industries and geographies. Findings show that challenges in CE operations are manifestations of tension, traceable to one key tension per level, paradoxically rooted in CE's archetypal paradox, created by the entanglement of tensions: the growth imperative versus resource preservation. This study advances theory and practice by exploring the relationship between paradox and tensions in CE and demonstrating how manifestations can be empirically traced. Instead of treating tensions as problems to be solved as in the extant literature, we acknowledge that CE tensions are constitutive of the system. We argue that CE is a systemic transformation challenge, shifting focus from managing tensions within firms to addressing them across organizations and systems.