Circular economy and firm performance: The influence of product life cycle analysis, upcycling, and redesign

Abstract The transition toward a circular economy (CE) implies the introduction of innovative practices at firm level. Nevertheless, an important question is under discussion: What are consequences these on performance? Using survey approach, this article analyzes effect CE related to product design economic and environmental performance: life cycle assessment (LCA), upgradability, for disassembly, reuse, recycling in sample 300 firms. Our findings show that, although most companies carrying out some eco‐innovation (innovations aimed reduce damage their activity), only process eco‐innovations new market improve performance but not performance. However, LCA tool implementing principles, helping both. Eco‐design positively associated with results provide managers policy makers insights long road achieving transition.