Circular Economy Adoption in the Textile Industry: an Empirical Appraisal of Strategic and Operational Practices

The textile industry is under increasing pressure to reduce its environmental impact, fostering the adoption of circular economy practices. However, firms may approach circularity through different pathways, combining strategic and operational actions to varying degrees. This study aims to explore how textile firms implement circular economy, identifying distinct profiles of circularity adoption. Using survey data collected from 234 firms operating in the Italian textile supply chain, an exploratory factor analysis identifies two key dimensions of circularity adoption: circular strategic orientation, reflecting the strategic and organizational integration of sustainability at the management level, and circular operational sourcing, capturing the adoption of circular practices at a more operational level. Then, a cluster analysis reveals three distinct firm profiles: Strategic Circular Leaders, characterized by strong strategic commitment but moderate operational implementation; Operational Circular Adopters, with high levels of circular sourcing but weaker strategic structures; and Low Circular Engagement Firms, showing limited adoption across both dimensions. The findings highlight the heterogeneous nature of circular economy adoption by textile firms, showing that strategic and operational dimensions may evolve independently. We argue that these profiles can be interpreted as distinct responses to the inherent tension between explorative and exploitative circular logics, with most firms resolving this tension through partial or total avoidance rather than integration. Thus, this study contributes to the literature by offering an empirical appraisal of circularity adoption paths by textile companies.