The transition toward a circular economy has emerged as one of the most significant transformations in contemporary economic, organizational, and technological thought. This transition challenges dominant linear models of value creation and compels firms to reconceptualize how resources, data, and institutional pressures interact in shaping sustainable business practices. Drawing strictly on the provided scholarly references, this article develops an integrative and theoretically grounded examination of circular business model innovation by synthesizing insights from systems theory, institutional theory, digital business strategy, and big data analytics. Anchored conceptually in the data–information–knowledge–wisdom hierarchy, the study argues that circular business models represent not merely operational redesigns but epistemic shifts in how organizations understand value, responsibility, and performance. The article adopts a qualitative, conceptual research methodology grounded in extensive interpretive analysis of the existing literature, enabling a deep exploration of the interdependencies between digital capabilities, organizational evolution, inter-organizational collaboration, and institutional environments. The findings reveal that circular business model innovation is best understood as a dynamic, multi-level process shaped by technological infrastructures, strategic alignment, regulatory and normative pressures, and evolving consumer practices. Furthermore, the analysis demonstrates that digital technologies and big data analytics act as critical enablers of circular strategies by enhancing transparency, coordination, and learning across organizational ecosystems. The discussion elaborates on theoretical contributions to circular economy scholarship, highlights limitations inherent in current research trajectories, and outlines future research directions emphasizing systemic integration, longitudinal analysis, and cross-regional institutional comparison. By advancing a holistic and deeply elaborated framework, this article contributes to the maturation of circular economy research and offers a robust foundation for scholars and practitioners seeking to align sustainability ambitions with digital and strategic transformation.