The world faces a severe planetary crisis marked by increasing pollution, depleting resources, and declining biodiversity, exceeding the Earth's sustainable limits. The circular economy emerges as an alternative, aiming to reduce waste through a closed-loop system, incorporating regenerative solutions, and leveraging Industry 4.0 technologies. However, integrating these concepts disrupts the business landscape, challenging the shift to digitally enabled circular business models. With this paper, based on a multiple case analysis of European and Australian companies, we advance a comprehensive theoretical transition framework encompassing three stages: transition, implementation, and optimization. Key triggers, mechanisms, circular economy strategies, and Industry 4.0 technologies along the circular economy path are uncovered. We also underscored the role of institutions in developed economies, suggesting a dynamic co-development of institutional and cost-based approaches. We also emphasize the agnostic role of Industry 4.0 technologies as enablers instead of drivers. The framework serves as a strategic tool for practitioners and policymakers, outlining the implications of circular strategies across diverse companies, sectors, and contexts.
