When the business is circular and social: A dynamic grounded analysis in the clothing recycle

Nowadays Social Entrepreneurship (or SE) and Circular Economy (or CE) are recognized as reference points for the definition of sustainable business models. However, management literature seems to privilege one of these paradigms at a time, neglecting their possible integration for business model innovation. This paper seeks to contribute to such literature gap by investigating the interplay between SE and CE and presenting a qualitative case study in the clothing recycle sector. By combining Gioia methodology and system dynamics, the study develops a research framework based on an interpretive, participative, and iterative approach. The emerging 'dynamic grounded model' synthesizes the mutual reinforce of circular commercial business and social mission's features for the transition from non-profit organizations to social enterprises.

Automated summary

This paper investigates the interplay between social entrepreneurship and circular economy by presenting a qualitative case study in the clothing recycle sector. The study develops a research framework based on an interpretive, participative, and iterative approach. It finds that the mutual reinforcement of circular commercial business and social mission's features contributes to the transition from non-profit organizations to social enterprises.