Collaboration as an enabler for circular economy: a case study of a developing country

Abstract

Purpose: The purpose of this paper is twofold: first, to advance the knowledge of Circular Business Models (BMs) over linear models by focusing on new dynamics which are unique to developing countries and have mostly been overlooked by contemporary literature; and second, to bring to the fore aspects of human-sphere which are currently under-researched in the circular economy (CE) domain. Therefore, the research explores how collaboration can facilitate the transition of a developing country’s economy through the creation of value from circular BMs and human-sphere. Design/methodology/approach: To fulfill the research objectives, the authors apply natural resource-based view (NRBV) theory to an in-depth case study. The authors draw the data from semi-structured interviews and observations in North African manufacturing companies. Findings: It was found that multi-stakeholder collaboration is pertinent in implementing CE, especially in developing countries. Collaboration between companies, focusing on CE BMs, with other companies/SMEs could lead to technology transfer and organizational learning necessary for resource efficiency (RE) and clean technology (CT) – the basis for CE. The authors propose a model for collaboration as an enabler for CE. Research limitations/implications: The analysis found multi-stakeholder collaboration to be an important antecedent to CE implementation in a developing country context. Furthermore, the authors found multinational companies who implement CE BMs generate a beneficial symbiotic relationship with local businesses. These benefits mainly revolve around technology transfer and organizational learning which is necessary for RE and CT – the basis for CE. Therefore, to advance knowledge and practice in this area, the authors propose a model for collaboration as an enabler for CE. Practical implications: The authors argue for the importance of collaboration in advancing CE practices which can yield tangible benefits for developing economies. Originality/value: This paper helps address the lack of theory driven research in CE. The paper is a pioneer in this research field as it proposes a theoretical framework for collaboration in CE drawing on from NRBV.