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Circular Economy is a policy and practice-oriented concept drawing mainly on engineering and natural science. This paper aims to contribute a conceptual development based on social systems theory. Does the Circular Economy have the prospect to become a sustainability-enhancing feedback mechanism potentializing an evolutionary systemic rearrangement of structural couplings, and will it encounter limitations as a general approach for a sustainable development?

By using the Luhmannian theory as method, core concepts are semantics, structure and rearrangement of structural couplings. In acknowledging the social system’s operational closure, social-metabolism with nature is discussed. The research is in three stages. First, structural couplings of matter and social systems. Second, structural couplings of organizational networks closing the loop–eventually using digitalization. Third, the Circular Economy encountering multicontextuality.

The paper provides: (1) A four-stage structural coupling enacting metabolism with nature allowing measurement of circularity potentially useable for feedback “irritating” relevant social systems’ reflexion. (2) Identification of obstacles encountered in the proliferation due to paradoxes of strategic decisions in organizations, difficulties of structural couplings of organizational networks and the paradox of digitalization. (3) Help by future digitalization but simultaneously new side-effects. (4) The multicontextuality as the limitation for a broad sustainability approach.

The paper answers a call for more social science theoretical research on the Circular Economy. It develops core conceptualizations based on social systems theory. Also, advices for future research and practical implementation are suggested.

The purpose is to investigate a position for engaged scholarship bridging the gulf between theorizing and practice in a social system perspective using Design Thinking for assisting the emergence of a semantic reservoir in a polycentric network “in spe”.

The paper combines social systems theory with the concept of engaged scholarship based on Design Thinking, and illustrates how such a research position might be applied to problems of polycentric networks as a theoretical/methodological case.

The paper concludes on a possible role for an engaged scholarship as a midwife assisting the emergence of a shared semantic reservoir that is needed to make commitments and couplings possible to become a polycentric network. Design Thinking is explained as a structured way to irritate (disturb) other systems, and the role of a shared semantic reservoir for a polycentric network “in spe” is accounted for.

Bridging the gulf between theorizing and practice in management theory is under-explored, and social systems theory underlines the immanent rigor-relevance gap, which this paper suggests a way not to overcome, but to bridge. The discussion of the rigor-relevance gap is revisited. Also, the critical process for a shared semantic reservoir to emerge in the formation of poly-centric networks is underexplored and so are its role for coupling of networks. The conceptual understanding thereof is also contributed to.

The chapter is based on the Social Foundation project: ‘Digital Pathways to Growth: Competency’ conducted in the region of Zealand in Denmark. The process of creating a multifunctional semantic – a competency model – is unfolded. Informed by social system theory the semantic required to enable dialogue in a polycentric network is analysed. The participants are various small and medium-sized enterprises, across many occupations and tasks, different types of educational and training organisations as well as process consultants from various knowledge institutions, labour unions and industrial interest organisations. The model is designed through a participatory process to help this polycentric network of organisations to build competencies for the digitalisation ahead.

We argue that design thinking and engaged scholarship in the construction of a multifunctional semantics – such as the competency model – is useful both as a practical method and as a semantic research strategy informed by social system theory. The role played by design thinking when developing the competency model as a multifunctional semantic is concluded and the future research outlined.

The research generates knowledge of practical value for networked collaboration in educational ‘ecologies’ as the need increases for stronger links between education, business and research, as well as the involvement of social partners and civil society to increase Europe’s innovation capacity as advised by both the OECD and the EU.