Coopetition for a circular economy: Horizontal initiatives in resolving collective environmental challenges

Abstract

To achieve industry-wide circular economy (CE) outcomes, such as material reuse or recycling, competitors need to join forces and enter the paradoxical relationship of coopetition, whereby competitors collaborate. According to the literature, coopetition can benefit sustainability. However, little is known about coopetition for a CE and how competitors, as stakeholders, can engage in resolving collective environmental challenges. This study examines the phenomenon of coopetition for a CE through an extensive multiple-case study from various industries in Finland. The findings indicate that coopetition for a CE can be organised through four distinctive modes of circularity: agreements for industry standards, pre-competitive R&D and knowledge-sharing, platforms, and reverse logistics systems. New industry standards supporting CE are set by engaging competitors in voluntary agreements. It is important to bring stakeholders together for CE-focused pre-competitive R&D and knowledge-sharing projects and networks. In applied and commercial coopetitive arrangements, stakeholder engagement (e.g., third-party coordination) enables cross-industry collaboration for reverse logistics systems, whereas platforms are used to connect stakeholders and match their supply and demand, thus facilitating the development of CE business models. Our chapter contributes to academic and practical discussions on how coopetition for a CE can manifest and how competitors, as stakeholders, can engage in collaboration and contribute to CE goals.