This study explores whether and how stakeholders' cognitive biases hinder the development and mobilisation of circular intellectual capital during the transition toward the circular economy (CE). It also explores how psychological barriers shape collaborative dynamics, knowledge sharing, and long-term investment, thereby slowing the adoption of circular practices within a textile ecosystem.
A qualitative inductive research design was adopted. Twenty-six semi-structured interviews were conducted with managers from textile firms, associations, and consortia engaged in CE initiatives. Data were analysed using the Gioia methodology to identify recurring cognitive mechanisms that affect stakeholder behaviour and circular decision-making.
The analysis reveals that cognitive biases generate self-reinforcing loops of resistance that limit experimentation, inter-organisational collaboration, and investment in long-term circular strategies. Organisational inertia, short-term financial logics, and distorted sustainability narratives lock human and structural capital into linear mindsets, while the externalisation of responsibility erodes relational capital, weakening collective accountability and coordination across the textile ecosystem.
This paper offers an empirical investigation of the psychological and behavioural dimensions of decision-making in the circular economy. It contributes to the CE literature by conceptualising cognitive biases as key barriers to stakeholder collaboration and by providing actionable recommendations for managers and policymakers to overcome these biases and accelerate circular transitions.
