Unpacking the Relationship Between Circular Economy and Interorganizational Collaboration: An Exploratory Study and an Analytical Framework

Abstract

Collaboration among different organizations could be a vital enabler of a circular economy (CE). However, few studies examine the role of interorganizational collaboration in CE initiatives. Particularly obscure is the relationship between different types of interorganizational collaboration and specific CE initiatives. This article explores such a relationship in the automotive sector through a content analysis of 73 nonfinancial reports disseminated by the world's largest automakers in 2021 and 2022. This article shows that focal firms primarily leverage interorganizational collaboration with suppliers to implement CE initiatives, mainly recycling and reducing initiatives. Focal firms relatively often collaborate with multiple actors and customers to implement CE initiatives, particularly recycling initiatives. Of note, collaboration with universities and research institutes plays a minor role in CE initiatives, assuming only a relatively higher relevance in CE initiatives with the highest degree of circularity. Last, this article provides a novel analytical framework to examine the relationship between interorganizational collaboration and CE.