Wim Van Opstal

This thesis examines the role of third sector organisational forms – social enterprises, cooperatives, and non-profit associations – in enabling a just transition to a circular economy. These organisations are particularly relevant to research on both the circular economy and a circular society because they pursue purpose over profit and create value through participatory governance structures. They thus offer distinctive approaches to organising production and consumption that complement market- and state-led strategies. The thesis responds to the gap in scholarship and policy understanding of how these organisations can address market failures, govern relational complexities, and integrate justice considerations into circular strategies. While the circular economy is often framed through the actions of governments and firms, this research demonstrates that the third sector occupies a distinctive and under-recognised position in bridging economic, environmental, and social objectives.

The study builds on multiple empirical studies and comparative analyses, exploring how organisational form choice influences the ability to enable and embed circular goals and outcomes. It shows that third sector organisations often have a comparative organisational advantage in internalising externalities, mitigating informational asymmetries, and resolving missing markets. However, their potential is restricted by structural financing constraints, limited policy recognition, and coordination challenges. At the same time, their governance structures – designed to safeguard mission integrity – can foster trust and inclusion, but may also limit their ability to respond quickly to rapidly changing markets.

This research identifies patterns across contexts. In some cases, supportive policy environments have allowed third sector organisations to integrate circular practices into everyday operations; in others, similar organisations have struggled to move beyond pilot initiatives. The thesis analyses these variations through a lens of organisational design, law and economics, and institutional economics, highlighting how comparative advantages can be leveraged when there is alignment between mission, governance, and enabling frameworks.

The key insights of this thesis are organised around three themes. First, organisational choice matters: the form, governance, and ownership structure of an organisation affect how it creates and distributes value in a circular economy. Second, enabling factors – such as financing, collaborative networks, skills development, and policy recognition – are critical to sustaining and scaling impact. Third, diversity in organisational forms offers system-level benefits: when governments, firms, and third sector organisations play to their strengths and collaborate deliberately, their combined impact exceeds what each could achieve alone.

The thesis contributes to academic debates by advancing an organisational perspective on a circular economy and society that integrates governance, economics, and justice considerations. It also offers actionable recommendations for policymakers and practitioners, emphasising the need to make organisational design and choice a deliberate feature of transition strategies rather than a by-product.

Overall, this thesis argues that a fair, resilient, and effective circular transition depends not only on technological innovation and market incentives, but also on recognising, enabling, and connecting the distinctive capacities of diverse organisational forms. Although scaling can be constrained by funding and operational challenges, the participatory way value is created within these organisations positions them to advance a circular economy and, more broadly, a circular society.