In this research proposal we contribute to knowledge about the social processes that end with small and medium enterprises, SMEs, adopting of CE activities, and individuals consuming ecological and sustainable products. We look at the interplay between firms, governments and consumers by putting culture in the center of analysis, asking whether and how it is rooted in prior experience, technology, organizational routines, government incentives and more. Thus, we adopt an understanding of culture as shared understandings and interpretations of organizational problems as well as solutions. Culture as we see it, is rooted on consumers conditions of live and firms resources and capabilities. To understand the interplay between firms, governments and consumers, we ask how firms transform their production and marketing processes, how they are influenced by incentives and policies, and how they perceive consumers views.