Abstract
This paper introduces flourishing circularity as a transformative approach to resource assessment that transcends both traditional Resource-Based View (RBV) theory and conventional circular economy concepts. We demonstrate RBV’s fundamental limitations in addressing the polycrisis of breached planetary boundaries and social inequities. Similarly, while the circular economy focuses on resource reuse and recycling, it often merely delays environmental degradation rather than reversing it. Flourishing circularity addresses these shortcomings by reconceptualizing natural and social capital not as externalities but as foundational sources of all value creation. We develop a comprehensive framework for assessing resources within an open systems perspective, where competitive advantage increasingly derives from a firm’s ability to regenerate the systems upon which all business depends. The paper introduces novel assessment tools that capture the dynamic interplay between organizational activities and coevolving social and ecological systems. We outline the core competencies required for flourishing circularity: regenerative approaches to social and natural capital, and systems thinking with cross-boundary collaboration capabilities. These competencies translate into competitive advantage as stakeholders increasingly favor organizations that enhance system health. The framework provides practical guidance for transforming resource assessment from extraction to regeneration, enabling business models that create value through system enhancement rather than depletion.