Towards a collaboration framework for circular economy: The role of dynamic capabilities and open innovation

Abstract

Transitioning from linear to circular production systems requires interactions that include cross-sectoral collaboration in networks. Understanding the role of collaboration within these networks can support the transition to a circular economy. To understand cross-sectoral collaborative endeavors, this paper develops a collaboration framework for circular economy by combining and interlinking three theories: the relational view, open innovation, and dynamic capabilities. The framework is applied to the Circle-House-Project, a cross-sectoral collaborative project aimed at scaling circular economy in the Danish construction sector. The explorative data included desk research and 15 semistructured interviews with expert project partners. The findings were transcribed, structured, coded, condensed, and categorized to provide an illustrative case based on a lighthouse project in the construction sector, affording a novel understanding of how cross-sectoral collaboration can support advancing circular economy practices by developing knowledge-sharing routines and ecocentric dynamic capabilities. The paper provides insights for academics and practitioners from a broad field by combining diverse interdisciplinary perspectives to unlock the potential of cross-sectoral collaboration for advancing circular economy.

Jump‐starting, diffusing, and sustaining the circular economy

“…Köhler et al (2022) develop a “collaboration framework for the circular economy” by combining insights from the relational view, the dynamic capabilities view, and the literature on open innovation. Their analysis of the Circle House project, a lighthouse project in the Danish construction sector, illustrates that both dynamic capabilities and open innovation support the creation of relational rent in collaboration for circular economy practices.…”

Proposition of a structural model for business value creation based on circular business models, innovation, and resource recovery in the pet industry

“…By innovating the business model with a focus on social and environmental aspects, the company challenges the conventional way of doing business and reconfigures its organization and position in the supply chain (Köhler et al, 2022). The new business model interacts with environmental, social, and economic demands; challenges; and benefits to propose the transformation of the value chain.…”

“…The innovation of the business model for circular economy increases the direction of the business to take advantage of differentiated opportunities for value creation. This occurs from strategies of reordering the logic of resource flows, decelerating the loss of utility, narrowing and closing production cycles, with the reduction or elimination of negative externalities, and the creation of strategic advantage (Köhler et al, 2022). Another relevant action for the effective insertion of innovation in the context of circular business models is to identify which part of the business changes and why.…”

Actions and approaches for enabling Industry 5.0‐driven sustainable industrial transformation: A strategy roadmap

“…Time, human resources, and communication technologies are raw resources needed for enabling such collaboration (Ghobakhloo & Iranmanesh, 2021). Nonetheless, resources should be combined to match the required mechanism for collaboration, such as mutual trust, decision processes, or commitment (Köhler et al, 2022). Therefore, RAC also involves the organizational ability to combine or integrate resources, draw on their complementarities, and develop capabilities and further competencies that empower corporate digital transformation under Industry 5.0 (Orji, 2019).…”