Untangling circular value networks - mechanisms, advantages, risks, and future research

Against the backdrop of climate change, increasing regulatory requirements, and societal expectations for sustainability, industrial companies are undergoing a transformation process towards the circular economy (CE). Since no single company can efficiently perform all the value creation steps required to implement CE, value creation networks are a success factor for the implementation of CE. This networks are sociotechnical systems in which companies cooperate and collaborate to create value jointly. These systems require active management to orchestrate the activities and companies involved. Previous studies have addressed the necessary mechanisms for the management of circular value networks (CVN) in a fragmented way; there is no overall view. A systematic literature review (SLR) was conducted to understand this phenomenon better and to identify the key mechanisms of the management of these CVNs. The study examined the need for CVNs, outlined their benefits and risks, and identified key areas for future research. For researchers, the results of the paper provide a starting point for investigating which existing concepts for implementing the mechanisms can be adapted to the circular context and which need to be rethought. For practitioners, this paper provides a better understanding of how companies cooperate in CVN enables them to optimize the cooperation of the partners in their CVN by implementing the relevant mechanisms.