Collaboration for a Circular Economy. Investigating the Relationship between the Quality of Collaboration in a Buyer-Supplier Relationship and the Degree of Circularity in the Business Model of the Supplier, in order to complement the Circular Business Model Canvas

Abstract

Collaboration for a Circular Economy The transition towards a circular economy is a necessity which is recognized by many scholars and practitioners. The present literature already foresees in the knowledge and guidance on introducing circularity into business models. For instance, the circular business model canvas by Lewandowski (2016) describes all elements a circular business model should comprise. However, the present literature often neglects the potential of joint actions. This research addresses this gap. Based on a literature review and a comparative case study it is investigated how the quality of collaboration in a buyer-supplier relationship is related to the degree of circularity in the business model of the supplier. This study shows that all elements of the quality of collaboration (communication, coordination, mutual support, cohesion, and aligned efforts) are positively related to the degree of circularity in the business model of the supplier. Based on the insights of this study, the circular business model canvas is complemented, and an adjusted version of the framework is presented. A new element, called ‘customer collaboration’ is included in the adjusted version of the circular business model canvas. This additional element helps organizations to shape and manage the collaborative relationships with their buyers.