A Circular Innovation Strategy in a Supply Network Context

Changes in networks do not take place in a vacuum but in a continuum structured by actor bonds, resource ties and activity links (Chou and Zolkiewski, 2012; Ford and Håkansson, 2006). The dynamics of business networks reflect a continuous organizing networking process, founded on new combinations of actors’ activities and resources. These dynamics are often associated to the generation and diffusion of innovation that is founded on interactions and interdependences among various actors in network. In this context our research question is: how does a company implement a circular economy strategy in a supply network context? This paper analyzes the perspective of a single company producing innovative materials within a supply network where a significant innovation takes place connected to the implementation of a Circular economy strategy. The new active packaging provided by the firm allows the reduction of CO2, thanks to the removal of aluminum and the reduction of thickness, thus opening up the possibility of moving to a single material to achieve 100% recyclability. In order to develop this new strategy the firm activated a process of change in the network.