Innovation-Led Circular Economy Pathways in India: The Strategic Role of Entrepreneurial Orientation and Human Resource Management

Abstract

India’s transition toward a circular economy (CE) represents both a necessity and an opportunity in the face of rapid urbanization, resource scarcity, and climate vulnerability. The CE framework emphasizes closing material loops, reducing waste, and fostering regenerative production systems, yet its implementation in India has been uneven and sector-specific. Innovation emerges as a central lever in bridging these gaps, enabling firms to redesign processes, valorize waste, and create sustainable value chains. Within this transformation, entrepreneurial orientation (EO) and human resource management (HRM) serve as strategic enablers. EO-through its emphasis on innovativeness, proactiveness, and risk-taking-drives the exploration of circular business models, while HRM practices shape the skills, cultural orientation, and organizational capabilities necessary to operationalize such strategies (Gupta & Jain, 2023). Recent studies underscores that India’s CE transition is not merely a technological challenge but a deeply institutional and human one, where workforce readiness and entrepreneurial ecosystems determine scalability (Chatterjee, 2022). HRM practices aligned with CE, such as green training, performance metrics, and cross-functional collaboration, strengthen organizational capacity for experimentation and long-term adaptation. Simultaneously, Indian entrepreneurs are leveraging digital platforms, frugal innovation, and indigenous knowledge systems to design localized solutions for waste valorization, renewable energy, and circular supply chains (Rana & Paul, 2024). These dynamics suggest that CE adoption in India rests upon the synergy of innovation, EO, and strategic HRM. This paper critically examines how these three pillars interact to shape India’s CE pathways, situating the analysis within manufacturing, agriculture, and services. By integrating EO and HRM perspectives, the study provides a framework for understanding how Indian firms can strategically embed circularity into core business models while advancing national sustainability priorities. The findings contribute to debates on sustainable development by positioning innovation-led HRM and entrepreneurship as cornerstones of India’s CE future.