Leading early, losing later? Responsible leadership and the lifecycle dynamics of circular economy adoption

Abstract

This study examines how responsible leadership (RL) influences the adoption of circular economy (CE) practices in the construction sector, with particular attention to how leadership effects vary across project lifecycle stages and institutional contexts. A qualitative design was used to explore how responsible leadership influences circular economy adoption in construction. Data from 21 semi-structured interviews with construction professionals were analyzed using inductive thematic analysis to identify key leadership behaviours and decision-making processes shaping CE outcomes. The findings show that responsible leadership supports circularity, but its effectiveness depends on structural conditions such as project initiation processes, procurement systems, regulatory environments, and supply chain maturity. Its influence is strongest in early project stages, where circular principles and contractual mechanisms can be embedded, but diminishes during delivery due to technical complexity, commercial pressures, and path-dependent design constraints. The study emphasizes embedding circular economy requirements early through procurement reform, explicit contractual obligations, and regulatory alignment, alongside strengthening the capacity of technical teams and supply chain actors to enable effective implementation of responsible leaders' circular economy goals. This study extends responsible leadership theory by framing RL as a contingent, institutionally embedded process rather than an individual trait. It advances understanding of leadership in sustainability transitions in project-based contexts by offering a process-oriented explanation of how institutional conditions shape sustainability outcomes.