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ABSTRACT Circular supply chains are widely promoted as a pathway to sustainability, yet firms adopting similar practices often achieve very different operational outcomes. Prior research mainly explains this variation through differences in technologies or capabilities, overlooking a key operational challenge: the persistent tension between standardization and adaptability. This study examines how firms manage this tension through operational supply chain management processes and how these processes shape both circular transition and outcome implications. Using a qualitative multiple‐case study of 48 US manufacturing firms, we show that outcomes depend less on whether firms standardize or adapt, and more on how they organize and reconfigure these demands over time and across supply chain activities. We identify three distinct tension‐management logics, temporal separation, structural separation, and dynamic recombination, which explain how firms govern this balance under different conditions. This study contributes by introducing a process‐based explanation for performance differences in circular supply chains, moving beyond static trade‐off and capability‐focused views. The findings matter because they show that circular supply chain success depends on managing ongoing operational tensions rather than adopting isolated practices. For managers, the results provide clear guidance on when to standardize, where to maintain flexibility, and how to align circular initiatives with competitive responsiveness.
Rashid et al. (Wed,) studied this question.