Sustainability‐Oriented Cooperation Networks in the Automotive Industry: Circular Practices in a Portuguese Industrial Ecosystem

ABSTRACT Despite the growing academic interest in environmental sustainability, there is still a scarcity of studies that empirically explore how cooperation networks function in complex industrial contexts. This study addresses how cooperation networks contribute to environmental sustainability in the automotive industry. Based on the theories of Resource Dependence and Transaction Cost, a qualitative case is analyzed based on a cooperation network formed from several firms. Based on six interviews and several documents, the research identifies practices aligned with the circular economy (CE) and highlights the importance of strategic leadership and information sharing. The results show that operational integration and relational proximity sustain effective environmental practices, although challenges persist, such as asymmetries in resources, misalignment of priorities and communication failures. The study proposes a theoretical model that links governance mechanisms and environmental impacts, contributing to an understanding of sustainable environmental cooperation in industrial networks. It concludes that well‐structured networks, based on mutual trust and commitment, can accelerate the ecological transition.