Innovation for Product Circularity: the Role of Networks

Distributors increasingly aim to control their downstream processes to offer customers extended life-cycle oriented solutions and to retain the value of their products for longer timeframes. The circular economy (CE) provides a comprehensive framework for product circularity in the form of maintenance, repair, reuse, remanufacture and recycle loops. As distributors usually have no core competencies in circular processes, a reasonable approach to develop value-added circular solutions is to collaborate with specialized service providers. In this article, we explore the inter-organizational network of a large German telecommunication operator, focusing on their voluntary circular offerings for smartphones. We utilize an embedded single case study design to analyze the innovation process in the making over a longitudinal timeframe on the three levels of industry, network and focal firm.