## 2 Literature Review
### Insights on Production Capabilities, Operations Obstacles, and Elements of Success
Some studies caution that organizational upheaval may cause a lack of coordination and may lead to the loss of the organization's shared values and beliefs [80]. [PERSON] et al. [86] emphasized that firms need to carefully design CEBM innovation while considering inputs from qualitative research studies. Others describe the importance of process development for CEBM design often entails uncertainties and complexities [21,47]. For example, Ref. [46] suggests that firms successfully implement innovation in CEBM when they are inclined towards experimentation and organizational learning. Refs. [83,87] presented their findings. They mapped the benefits of CEBM innovation by suggesting that top management is a crucial enabler in the redesign process. [PERSON]. [25] argued that top management could realign resources to achieve the set goals with the firm's objective. [PERSON] et al. [10] explored uncertainties such as customer perception of used products, safety, and risk in a transition towards CE. The introduction of remanufacturing into the industry, which Xerox and Fujitsu dominated, resulted in a convergence of capabilities and incentives that encouraged the existing business to embrace remanufacturing and assert reuse as a natural extension of core CEBMs [23]. [PERSON] and [PERSON] [88] recommend that structuring a firms' internal management is vital for implementing a successful CEBM. According to [89], prioritizing actions and capabilities can play an essential role in transforming a successful and strategic business model. Capabilities refer to deploying resources and accomplishing a target via organizational processes [9]. The term\"competence\" is the degree of skill in the task's performance [90]. These new capacities evolve throughout time due to path-dependent learning processes [9]. Previous research demonstrates that reorganization and technical advancement are critical DCs for CE implementation [11]. Successful leadership depends on managing complex business models and managers who can make decisions, facilitate work environments that encourage employee commitment, and implement practices that lead to the overall achievement of specific goals [69]. Prior case-based research has found that leadership commitment towards \"capacity-building and information management for CE\" is essential. So are appropriate reuse and waste recycling facilities to help material reuse firms transition to a CE [91]. Applying the business model design process in CEBMs can trigger a transformation of the firms' structure, focusing on rethinking business models [67]. CEBM has been looked at as how business processes capture value by repairing and reselling products or reusing and upcycling these materials [32]. Reuse and remanufacturing of products can drive and facilitate extending the life cycle of a product [92], decreasing the amount of waste sent to landfills. As [93] points out, innovative business models such as CEBMs help bring products to market with incremental and novel changes. The CEBMpositively impacts the environment and society by creating and delivering new products and services to customers, helping to trigger new revenue streams from resource-efficient and circular resource flows. These models provide an opportunity to reimagine capitalism ([PERSON], 2020). From an institutional perspective, governments help firms develop the capability to implement CE practices ([PERSON], 2020). Leadership in the public sector also calls for business leaders to put their faith in direct government intervention that could enable companies engaged in product life extension to scale up their operations and pave the way for a transition to continuous extension ([PERSON], 2020). Following this logic, we review the literature on how to transition a business to understand the necessary conditions for a successful transition in a CEBM. We try to understand the integration of sustainability into business models and practices ([PERSON], 2020).