The circularity skills trilemma: Sweet spotting the combination of skills for sustainability

Despite growing recognition of skills as foundational to change, their role as micro-foundations underpinning ordinary capabilities remains under-theorized and under-explored. This is especially pertinent in emerging transitions such as the shift toward a Circular Economy (CE). CE, enabled by digitalization and innovation (as well as intellectual property), is gaining traction as a viable alternative to the linear model. Prior literature identifies skill appropriation as a significant challenge in this context. To address this, we introduce the D-Co-C framework, which conceptualizes the interplay between core (CE) skills, domain-specific skills (digital and IP innovation-oriented), and combinatorial skill sets. Drawing on CE transition and digital transformation literature and informed by broader human capital development perspectives, we employ fuzzy-set qualitative comparative analysis on survey data, complemented by explainable artificial intelligence using SHAP. This dual approach elucidates their interactions and the hierarchical structure of skills. Our findings show that specific configurations of domain and combinatorial skills are closely linked to the uptake of core (CE) skills. In doing so, we position individual skill combinations as key micro-foundations, offering insight into how skill integration 'sweet spots' can enable more effective transitions.