Advancing Circular Industrial Practices:A Comparison of Logics in Scotland and the Netherlands

Abstract

Despite urgent environmental challenges, the transition toward a circular economy (CE) remains fragmented; hindered by entrenched linear production paradigms. This study examines the institutional dynamics influencing CE implementation by investigating the interplay between policy aspirations and industrial practices. Drawing on institutional logics theory, we analyze how market, state, and community logics shape organizational responses to CE initiatives in two European contexts with ambitious sustainability agendas: the Netherlands and Scotland. Although both countries demonstrate strong policy commitments to CE transitions, actual implementation reveals significant gaps between stated ambitions and industrial practices. Our findings suggest that while both countries face similar challenges, the Netherlands demonstrates more effective integration of different institutional logics, particularly in coordinating market and state interests. Scotland, by contrast, shows higher ambition but also greater fragmentation between policy rhetoric and industrial adoption currently. This research contributes to understanding the institutional complexities underlying sustainable industrial transitions and offers practical recommendations for reducing policy-practice decoupling in CE implementation. These insights are valuable for policymakers, industry stakeholders, and researchers working toward more coherent and effective circular and eco-efficient industrial practices