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Network change in circular economy transitions: examining interconnectedness, embeddedness and adaptations as key constructs

Nina Hasche,Outi Keränen,I. Ojansivu,Pauliina Ulkuniemi,Ann Vellesalu

Published 2025 in Journal of Organizational Change Management

ABSTRACT

Literature is abundant in identifying challenges related to multi-actor and cross-sector collaboration needed in circular economy transitions. This conceptual paper applies theoretical perspectives from the Industrial Marketing and Purchasing literature (IMP) to better understand these challenges and the underlying mechanisms of network change. Specifically, we examine the theoretical constructs of adaptations, interconnectedness, and embeddedness to provide insights into network change in the circular economy transition. This approach thus takes the behavioral instead of technical approach to CE. The paper is a conceptual study in which existing literature on CE is enriched by employing knowledge from the literature on business relationships and industrial networks. The present study seeks to develop a model by using the IMP theories as method theories to increase understanding of CE transitions. We develop a set of fundamental premises that reconcile the gaps in the CE literature and provide guidance for facilitating network change in CE transitions. Finally, we develop a theoretical model of network change in CE transitions, including solutions to address the identified challenges. The findings of the present study offer a contribution to the existing literature on CE transition, especially the theoretical discussion related to CE challenges. The paper conceptually advances the literature on CE transition by proposing three premises depicting the network change mechanisms toward CE.

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