Reinventing Leadership Models for Circular Economy Organizations: A Grounded Theory Perspective
Keywords:
Circular economy, leadership model, grounded theory, sustainable leadership, circular business model, Tehran, qualitative researchAbstract
This study aimed to develop a grounded theory model explaining how leadership models are reinvented in organizations transitioning from linear value creation to circular economy systems. This qualitative study was conducted using a grounded theory approach. Participants included 24 senior managers, sustainability directors, operations managers, circular business model consultants, and innovation leaders from circular economy-oriented organizations in Tehran. Participants were selected through purposive and theoretical sampling. Data were collected through semi-structured interviews lasting 45 to 75 minutes. Theoretical saturation was achieved after the twenty-first interview, and three additional interviews were conducted to confirm category stability. Interview questions explored leadership experiences, decision-making processes, stakeholder coordination, resource-loop management, organizational culture, and barriers to circular transformation. All interviews were transcribed verbatim and analyzed using open, axial, and selective coding with the support of NVivo software. Constant comparison, memo writing, member checking, and peer review were used to enhance trustworthiness. The analysis generated one central phenomenon: circular leadership reconfiguration. Five main categories were identified: regenerative strategic sensemaking, distributed ecosystem governance, circular capability orchestration, ambidextrous value-loop innovation, and accountability-based cultural embedding. The findings showed that leadership in circular economy organizations is not limited to top-down vision-setting; rather, it involves continuous coordination among internal units, external partners, suppliers, customers, regulators, and local communities. Participants emphasized that circular leaders must integrate economic viability, ecological responsibility, stakeholder legitimacy, and long-term resource stewardship. The study proposes a grounded theory model in which circular leadership emerges as a relational, systemic, and adaptive process. Reinventing leadership for circular economy organizations requires moving beyond hierarchical control toward ecosystem coordination, learning-oriented experimentation, and accountability for regenerative value creation.
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