From selection to Circularity: How Stakeholder Co-creation transforms incubation

This study examines how stakeholder influence, particularly donor mandates for circular economy integration, transforms entrepreneurial incubation processes. Through participatory action research in a Jordanian incubator across two cohorts over 24 months, we investigated how circular economy principles reshape conventional incubation practices. The research compared Cohort 1, operating under standard procedures, with Cohort 2, which implemented stakeholder-driven modifications. Data collection involved reflexive journals, focus groups, and staff interviews, analyzed through reflexive thematic analysis. Four key interventions emerged: revised recruitment emphasizing entrepreneurial traits like bricolage and alertness; broadened opportunity scope beyond predetermined waste sectors; participant-led team formation; and project-based training incorporating circular economy tools. The findings reveal incubation as a negotiated, multi-stakeholder process where donor goals, entrepreneur needs, and organizational priorities intersect. Theoretical contributions extend stakeholder and process theories by demonstrating how sustainability mandates function as institutional logics altering incubator operations. Practical implications suggest incubators should screen for circular-oriented traits, implement experiential training, and construct circular economy ecosystems through strategic partnerships. The study establishes circular incubation as a distinct paradigm requiring new selection criteria and performance metrics. • Stakeholder co-creation transforms CE incubation through negotiated redesign among donors, incubators, and entrepreneurs. • Screening for bricolage and alertness—not just business knowledge—predicts CE success and venture continuity. • Broader challenge scope fosters innovation; narrow sector-specific mandates constrain creativity and entrepreneur ownership. • Project-based training with CE tools (LCA, MFA) as opportunity recognition outperforms lecture-based approaches. • Circular incubation is a distinct paradigm requiring new selection criteria, experiential training, and stakeholder-led adaptation.