Exploring determinants of collaboration in circular supply chains: A social exchange theory perspective

In the transition to a circular economy, the supply chain plays a pivotal role in implementing successful circular models. While literature underscores the significance of social relationships and collaboration among supply chain stakeholders for this transition, there remains a gap in understanding how to effectively implement and enhance these collaborations in circular supply chains to improve sustainable performance. This study aims to address this gap by examining the factors that determine social relationships and collaboration within circular supply chains and their impact on sustainable performance, drawing from the perspective of Social Exchange Theory. Through a literature review (44 papers) and a multiple case study involving 10 companies, this research identifies trust, commitment, reciprocity, and power as key determinants in the collaborative relationships among stakeholders in circular supply chains and elucidates their influence on sustainable performance. Our results have enabled the creation of a conceptual model to better understand how social relationships within circular supply chains influence the quality of collaboration among stakeholders, which in turn affects overall supply chain performance. This model has implications for both academia and industry because it suggests that social relationships impact performance with partial mediation by collaboration quality and a moderating effect of circular economy strategies.