What is System Understanding

The place of knowledge management in ensuring effective transition into a circular economy by developing a circular business model as an alternative to the conventional linear economic model is under-investigated. Knowledge coordination, creation, and dissemination capability of a firm are important in developing the green industry and offering new job opportunities. This chapter adopted a literature review approach to establish the link between knowledge management and transition into a circular economy. Findings show that the firm's eco-innovation process depends largely on strategic knowledge management. Therefore, systems understanding and self-motivated creativity are essential professional knowledge levels in developing circular business models for sustainability. Hence, firms need to enhance the knowledge-based for continuous business process improvement, eco-efficiency, and eco-innovation.