The role of the cooperative model as a collaboration facilitator in the Circular Economy

Abstract

Advancing from a linear economy to a circular economy (CE) requires organizations to collaborate across organizational boundaries. In particular for the implementation of Circular Business Models (CBMs), it is crucial for stakeholders to collaborate together along the whole value chain to implement circular strategies such as reverse logistics. Social enterprises can provide an innovative and unique approach to the CE, provided they also advance the social dimension of the CE. Particularly cooperatives incorporate promising and unique capabilities in their democratic governance structure that could foster collaboration. Accordingly, this research aims to identify strategies deployed by cooperatives to foster collaborations for implementing CBMs. It follows a multiple case study research design including ten cooperatives implementing CBMs in Europe. This research used qualitative data retrieved through 142 archival data sources, 28 interviews and three months of participant observation in the context of an academic internship at the cooperative Commown. The results show that three types of strategies deployed by cooperatives are essential in facilitating collaborations for implementing CBMs: 1) Cooperatives can align interests by collaborating with like-minded companies, especially other cooperatives. Additionally, particular attributes of the horizontal governance structure of the cooperative proved to be instrumental in increasing alignment of stakeholder interests. 2) The social values and profit constraints of cooperatives can increase trust and foster resource complementarity with commercial corporations. Furthermore, the cooperative network can help to attract new consumers and mobilize financial resources. Moreover, the cooperative model has the capability to create a mutual economic interest and can stimulate collaboration between different types of stakeholders with complementary tasks and or activities. 3) Lastly, the cooperative can mobilize social networks by improving (informal) relations, providing a shared cooperative culture and by (often) operating on a local scale. In addition, two main barriers obstructing collaborations for CBM implementation relating to cooperatives are identified: 1) Resource constraints because of lack of cognitive legitimacy and higher costs of collective decision-making. 2) Misalignment of interests because of goal discrepancy or lack of engagement from collaboration partners. Lastly, two striking findings emerged suggesting further theoretical and practical implications. First, the ambivalent role of participation in the cooperative governance structure and its capability to foster collaboration challenges current literature on participation in cooperatives. Second, this thesis highlight the potential of the cooperative network for fostering collaboration for CBM implementation. These results offer novel insights for CE literature and practitioners looking to structure collaboration for CBM implementation.