Abstract
This paper discusses the challenges companies in the manufacturing sector face in implementing circular economy (CE) principles. This study draws on a longitudinal multiple-case study to examine the implementation of circular value propositions piloted in two large European manufacturing companies. The study identifies several barriers to CE implementation, including financial uncertainties and technical challenges in establishing effective reverse logistics, as well as organizational barriers such as lock-ins due to linear mindsets and practices. The research emphasizes the need for a systemic approach that integrates product design, business models, supply chains, and ICT to overcome these barriers. The study also proposes a framework for CE transition that includes iterative testing and refinement of solutions that can foster a shift toward CE.