Abstract:
The circular economy is gaining a lot of interest as an alternative system that could
address global challenges of environmental degradation and the depletion of the Earth’s
resources. Business leaders are aware of the opportunities presented by the circular
economy to gain competitive advantage whilst being responsible corporate citizens. The
fast-moving consumer goods, packaging, mining, and heavy industry sectors are
representative of the growing consumption patterns driven by population growth and
urbanisation and the unsustainable negative impacts of the linear ‘take, make, use and
dispose’ system. A transition to a circular economy in these sectors could have the
biggest impact on the global economy, society, and the environment. This study aimed
to develop new insights and understanding of supply chain collaboration for the transition
to a circular economy. A better grasp of supply chain collaboration would better equip
business leaders to make the necessary paradigm shifts to dramatically transform how
their companies create, capture and deliver their value proposition to their customers, as
demanded by the circular economy business models. This study investigated the major
constructs of supply chain collaboration such as partner section, partner capabilities and
the management of collaborative relationships. The enablers and barriers to transitioning
as well as how the circular economy contributed to sustainable development outcomes
were also investigated.
The research was designed as an exploratory, qualitative research. Data gathering was
done through 18 semi-structured interviews of decision makers involved in circular
economy and supply chain collaborations in the FMCG, Packaging, Mining and Heavy
Industry sectors in South Africa and parts of Africa. The output of the study was a
conceptual framework presenting the new insights on the key constructs of supply chain
collaboration for a circular economy. This study served to confirm and thus add to the
existing body of knowledge by making a potential contribution to the circular economy
literature. The research also contributed potential refinements to the CE literature. These
potential refinements to the CE literature included supplier development incentives and
financial capability (related to collaborations); lack of institutional coordination,
economies of scale, global frameworks, and consumer advocacy (related to the barriers
and enablers of the transition); and lastly, country and sector context related to
sustainable development outcomes. The research also identified new insights that are
potential extensions to the CE literature, related to supply chain collaborations for a
circular economy. These potential extensions to the CE literature included partner due
diligence and partner support.
