Abstract
Social dimensions remain systematically marginalised within circular economy scholarship despite their foundational importance for sustainable transformation. This paper addresses a critical theoretical gap: existing dynamic capabilities frameworks cannot explain how organisations manage the unexpected, temporally compressed social pressures that characterise circular economy business model transitions. Drawing on qualitative multi-case study research across three UK-based multinational enterprises at different circular economy maturity stages, employing Gioia methodology under a critical realist philosophical framework, the paper develops three interconnected theoretical contributions. First, it conceptualises reacting as a fourth dynamic capability complementing Teece's sensing-seizing-reconfiguring framework through a distinctive capability incubator function. Second, it proposes a Multi-Level Social Value Integration Framework distinguishing circular business model-enabled social value from conventional CSR. Third, it presents a Nested Stakeholder Development Framework demonstrating that inner circle workforce capabilities are the structural prerequisite for outer circle ecosystem engagement.