The pursuit of a competitive advantage: Multinational organizations’ value perceptions of a circular economy strategic partnership

Abstract

Mineral extraction is required for progress, contributing to economies, new technology development, and the materials that sustain modern societies. Yet, more than 50 percent of the global greenhouse gas emissions are produced by mining, directly contributing to global warming. Current consumption levels are pushing the planetary boundaries beyond the Earth's regenerative capacity and the estimated population growth will continue to drive demand. A sustainable approach is required that will promote responsible extraction and usage of resources whilst addressing the growing waste concerns. Circular economy, a phenomenon not yet embedded in global mining practices, could be a significant enabler for mining companies and their suppliers to assist in addressing the carbon reduction and sustainability challenges. This research set out to gain insights into the value perception of a circular economy strategic partnership between two multinational companies operating in the mining industry, if such a partnership will contribute to a competitive advantage and how such a partnership framework will be construed. A qualitative research methodology was used to gather the data. Twenty-three interviews were held to gain the perspectives of global participants knowledgeable in the fields of sustainability, partnership development, and global account management. Participants included mining and supplier professionals based at their respective corporate offices and on the mine sites. The key outcome of the research is a conceptual framework for developing circular economy strategic partnerships. The framework incorporates the key constructs identified in the literature combined with the findings from the research, to present a userfriendly model that incorporates circular economy into a strategic partnership that can create a competitive advantage through the value perception of this partnership for all role players.