Background: As Earth’s resources are continuously being used at an overcapacity, circular economy (CE) has received a growing interest from scholars, practitioners and legislators. The phenomenon has been described as a solution to the linear take-make-dispose strategy integrated into society and used by organisations. However, despite the possibilities within the CE, organisations require more knowledge as to how the transition towards CE occurs, on account of the changes that also need to transpire in the organisational business model (BM). Hence, this study focuses on how practices facilitate innovation and thus, the implementation of CE within organisations.

Purpose: The purpose of this study is to explore the transition that an organisation endures when innovating the BM in line with CE. Accordingly, the study takes the perspective of managers as change agents as they represent the organisation when strategizing and implementing practices. By investigating the link between managers and business model innovation (BMI) to achieve CE adoption, this study aims to provide a deeper insight into CE and the transition organisations go through.

Method: Our method has been founded on a qualitative study with an explorative nature. Additionally, we have used a multiple case-study approach of two companies where the primary data was collected through 13 semi-structured interviews. Moreover, the data has been analysed by using comparative analysis to identify patterns between the two companies.

Conclusion: The results of the study show how internal and external factors influence the transition journey of companies when innovating the BM, and implementing circular practices in line with a circular business model (CBM). Moreover, the findings exhibit how managers interact with these factors to select and alter processes to establish suitable practices from the vision and the level of flexibility achieved in the organisation