Beyond growth: how scaling cleantech firms drives circular economy

Purpose The paper aims to investigate how scaling activities – specifically acquisitions, financing, innovation and digitalization – foster the development of circular economy (CE) strategies within digital cleantech firms. The research also proposes a conceptual model that asserts how scaling activities in digital cleantech firms facilitate and accelerate CE strategies. Design/methodology/approach The study uses a qualitative, multiple-case study approach involving 12 born-digital cleantech firms in Brazil. Data was collected through 18 semi-structured interviews with senior executives and supplemented by documentary analysis and secondary data for triangulation. Findings The findings indicate that scaling activities directly structure the adoption of circular practices: acquisitions facilitate access to sustainable technologies; financing and innovation drive environmental projects and low-impact solutions; and digitalization optimizes resource use through operational flexibility. Furthermore, digital capabilities are identified as a crucial antecedent for embedding CE into scaling strategies. Research limitations/implications The study is limited by its focus on infrastructure-related cleantech firms within the Brazilian regulatory and technological context. Future research should explore different geographic regions and industries to enhance the generalizability of the proposed conceptual model. Practical implications The research offers offer a roadmap for cleantech firms to assess their digitalization competencies, identify technological market pathways and generate positive externalities for the environment, economy and society. It also provides insights for policymakers to design institutional environments that encourage environmental, social and governance-aligned growth. Social implications The research contributes practically by offering insights for firms and policymakers seeking to promote sustainability through digital technologies. Originality/value The paper contributes to the literature by linking scaling and CE strategies in digital cleantech firms. It provides a conceptual model that explains how digital scalability can transition firms toward a circular model, moving beyond a simple growth focus to include sustainable value creation.