Closing loops, opening minds. The role of social capital for knowledge sharing relationships in circular value networks.

Abstract: In the wake of the threats of climate change and natural resource depletion, an increasing number of companies are aligning their strategies and operations with the concept of the circular economy. The circular economy transition can be enabled by companies adopting novel circular business models, embracing collaboration and knowledge sharing between partners in broad circular value networks. Dimensions of social capital, like trust, shared language, and network ties, are important for knowledge sharing, and particularly for the developing and maintaining of the knowledge sharing relationships between firms that enable it. While social capital and knowledge sharing in traditional value networks has been amply researched, the same does not apply to circular business settings. To further investigate this, this study utilises a qualitative, single case study approach, specifically delimited to a circular value network for the recycling of flat glass. The study finds that the dimensions of social capital plays four roles, catalysing, aligning, incentivising and hindering, in knowledge sharing relationships in circular business settings. These conclusions add to novel research on the circular economy, social capital and knowledge sharing, in order to provide insights to be used as a base for future research as well as for business practitioners and policymakers undertaking the circular economy transition.