Collaboration Strategies for Circular Fashion: A Global Perspective

Collaboration strategies have long been central to international business, often framed within cooperative strategy as a means for firms to achieve goals through alliances rather than competition. However, this conceptual overlap can obscure the unique dynamics of collaboration, particularly in sustainability transitions, where actors align around shared purposes rather than individual gains. This chapter redefines collaboration by examining both internalized MNE networks and external, non-equity partnerships rooted in shared value, involving market and non-market actors alike. We explain the forms, functions, and strategic implications of collaboration in advancing legitimacy and operational efficiency, particularly within high-impact industries like fashion, undergoing green and circular transformations. Our analysis underscores the need to move beyond traditional cooperation models to more nuanced, purpose-driven understandings of collaboration in the circular economy. We highlight future research opportunities around governance and strategic coordination, particularly how internalization and externalization decisions shape collaboration outcomes, capabilities, and legitimacy across home and host contexts. Additionally, we call attention to under-explored actors, such as transnational institutions and diasporas, and the social dynamics they bring to transnational collaboration. The concept of transnational social space or communities offers a valuable lens for examining these evolving multi-actor collaborations and their role in advancing global circular fashion transitions.