Assessing Organisational Capacities of Motivation-Driven Performance Outcomes in Circular Economy Transitions

Background. The transition from a linear to a circular economy is a complex process influenced by various external and internal factors, including state regulations aimed at achieving ESG objectives, market conditions, and consumer demand. Internal organisational factors, such as human resources, finance, and technology, determine an organisation's capacity to implement circular models. It is also important to consider the quality aspects of circular solutions that act as motivators and generate benefits not only for the environment and society but also for the implementing organisations. Purpose. This study aims to quantify and analyse the correlations between external motivators, internal capabilities in the circular economy transition, organisational benefits derived from implementation, and impacts on organisational performance. Findings. The analysis revealed strong correlations between most circular economy factors and key aspects of organisational performance, highlighting the strategic value of investing in circular economy models. The strongest correlations were found between team capacity and expert effectiveness (0.769), economic performance and financial efficiency (0.756), and resource efficiency and its associated benefits (0.741). Most of the remaining factors demonstrated moderate correlations (0.30–0.59), and only a few indicators demonstrated weak correlations (<0.29), which require further investigation. The results obtained, especially the highest correlation between team and expert potential, highlight the paramount importance of investing in human capital and management competencies as the basis for a successful transition to a circular economy. Implications. Organisations in Bulgaria that invest in the right enablers (management, finance, technology, and partnerships) are facilitating circular economy transitions and improving their performance to achieve growth and success. This provides valuable insights for informed policy, strategy, and funding decisions. Key motivators and opportunities for implementing a circular economy are closely linked to precise benefits for organisations, such as the strength and expertise of the human factors team. In contrast, interdisciplinary teams required further study due to their weak correlation with expected outcomes.