Circular economy and open innovation: SMEs’ view on circular economy-related inter-organisational collaborations

Many studies examine the elements influencing the implementation of circular economy (CE) initiatives in different contexts. Among these elements, the open innovation (OI) paradigm is gaining attention as a potential enabler of specific CE initiatives. In particular, inter-organisational collaboration–a typical form of OI–is often discussed as an enabler of CE initiatives for large enterprises. Remarkably, very few studies deal with CE-related inter-organisational collaborations in the context of small and medium-sized enterprises (SMEs). Particularly obscure are the factors that trigger and influence CE-related inter-organisational collaborations of SMEs. This paper addresses this gap in knowledge by leveraging 21 semi-structured interviews with SME managers and founders. A thematic analysis based on a three-step coding approach–open, axial and selective coding–led to the identification and examination of drivers, enabling factors and challenges for CE-related inter-organisational collaborations of SMEs. Leveraging the institutional theory in the analysis, we identified relevant drivers for CE-related inter-organisational collaborations, including normative forces, formal and informal coercive forces, access to external resources, and providing skills and capabilities. The enabling factors include trust, clear roles and responsibilities, geographical proximity and CE commitment. The challenges identified are the lack of financial resources, different goals among partners, lack of early involvement, regulation and lack of proficiency in CE. This study contributes to the growing body of knowledge about the relationship between OI and CE and triggers future research opportunities about this relationship.