ABSTRACT Many firms set ambitious sustainability goals but these are frequently “displaced” by proxy goals that are easier to track and measure. However, the specific types of goal conflicts that follow from this displacement are poorly understood. We conducted a case study of circular innovation initiatives at a global MedTech company and identified three types of goal conflicts: inclination conflict , insufficiency conflict , and estimation conflict , along with the organizational processes aimed at reducing the negative impact of these conflicts. Our study contributes to the circular economy and organizational goal theory literatures by uncovering how goal displacement and goal conflict influence outcomes of circular innovation initiatives. By linking these dynamics to strategic decision‐making in the front end of innovation, where new circular innovation initiatives are established, we demonstrate how business strategies can help align organizational goals with long‐term sustainability ambitions, thereby helping companies deal with trade‐offs, rebound effects, and regulatory pressure.
Reim et al. (Thu,) studied this question.