All for One and One for All : Inter‐Firm Collaboration in the Transformation Towards a Circular Economy

Abstract

Collaboration is central to the circular economy. This study examines ways companies can advance the circular economy in their business operations through inter-firm collaboration. The empirical data consist of 43 semi-structured interviews with representatives of Finnish companies of different sizes and sectors that have implemented aspects of circularity in their operations. The findings reveal that companies approach inter-firm collaboration by means familiar from the linear economy, for example, pooling resources. Still, inter-firm collaboration can advance a circular economy: It not only helps individual companies in their pursuit of a circular economy but wider collaboration can also nudge whole sectors towards the circular transformation. In addition, inter-firm collaboration can introduce new norms for conducting business. In the circular economy context, it was found that inter-firm collaboration is currently a way for companies to overcome inadequacies in the system that are largely due to the relative novelty of the circular economy model.