CIRCULAR ECONOMY AND BUSINESS NETWORKS: A CASE STUDY ON A FASHION COMPANY

Having a production and consumption model based on “take-make-dispose” of products and materials, that contributes to the degradation of the environment and society, has clearly become unsustainable. In order to counteract the negative impacts caused by the linear model, the circular model appeared. In this model, waste and pollution are prevented and actions of reduction, reuse and recycling are being implemented. By developing more sustainable and circular solutions, firms are able to incorporate changes and innovations into their businesses and reach more easily their sustainable goals. Circular economy and business networks can be seen as interconnected concepts where a company develops and preserves different relationships with different companies, within a network of companies, as a way to support and be supported in their circular journey. This study aims at understanding how circular economy affects and is affected by business relationships, from a business network perspective. A case study on the company ALPHA was developed for that purpose. The main conclusions taken from this study relate to the fact that there is a need to build strong, stable and long-term relationships, between companies within a business network, established upon trust, mutual commitment and transparency, in order for a company to successfully transition to circular economy. At the same time, for this transition to happen, several changes and adaptations need to occur in terms of actors, resources and activities across a company’s supply chain. Sharing knowledge and different resources between companies is only possible through the development of business relationships, which is extremely beneficial as it can create opportunities for innovation and consequently develop solutions that provide several environmental, social and economic advantages, for both companies that alone, they could not achieve. Finally, small changes and solutions, not directly related to a company's core business, can also have an important impact on circular economy, over time. With a culture of continuous improvement, no matter the action, if a company works everyday towards circularity, significant results will be seen.