Supply chain collaboration for a circular economy - From transition to continuous improvement

The circular economy (CE) is a valid alternative for replacing the current linear model, which causes resource depletion, yet there is much to be developed and a lot of innovation required for such a purpose, and organizations must collaborate to find common solutions. This study examines how supply chain collaboration challenges have been addressed in CE research. Based on a systematic literature review, we demonstrate that, despite being emphasized as fundamental to the advance of a CE, supply chain collaboration suffers from various constraints. The ability to select partners and develop a trustworthy relationships is rare and has implications for the success and continuity of collaboration. We also find that the principles of circularity are not always observed and that several studies present isolated circular practices in a linear logic. In view of these results, we prepare propositions regarding the incorporation of social and governance capabilities in the transition and further improvement process of a circular economy. There are many obstacles to a CE model, and the collaborative capabilities of selected partners are important factors that deserve more attention from managers.