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Circular Economy Capabilities for Slowing Resource Loops at Small Businesses in China, Finland and Japan – An Institutional Logics Perspective

Savu Rovanto,Yuan Virtanen

Published 2025 in British Journal of Management

ABSTRACT

Existing circular economy (CE) research has primarily explored capabilities for the principle of closing resource loops (recycle and recover) in limited institutional contexts. However, little is known about the capabilities for the principle of slowing resource loops (reduce and reuse), despite its alignment towards achieving net zero economies. This research investigates capabilities for slowing resource loops at small CE businesses and the influence they experience from institutional logics in three CE‐pioneering countries of China, Japan and Finland, with a focus on low‐technology applications. The study uncovered capabilities in four themes: professional foundations, emotional engagement, interaction with the market community and (re)inventing the profession. The key differentiating influence in China was the markets’ shift to online; in Finland, it was positive attitudes towards sustainability; and in Japan, it was the connection of certain slowing practices to the country's rich cultural history. The study concludes that the influence of the institutional logic of the profession appeared similarly in the three countries, while the market influences differentiated the contexts. In the slowing‐oriented professions, trading mid‐lifecycle items called for specific capabilities for emotional engagement. The capabilities at small businesses were closely attached to persons rather than organizations.

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