Influence of Inter-Firm Network Relationships on Circular Economy Eco-Innovation Adoption

Research has shown that inter-firm networks and relationships play a key role in innovation adoption; however, these concepts have not specifically been applied to study their role in the adoption of circular economy eco-innovations. This paper considers whether the embedded relationships within inter-firm networks also influence circular economy eco-innovation adoption. Using a historical case study of the REALCAR closed-loop recycling initiative, by Jaguar Land Rover, from 2013 to 2017, the paper conducted qualitative interviews to reconstruct the structure and nature of the relationships between Jaguar Land Rover and its suppliers. This was complemented with a network regression analysis to determine the influence of these relationships on the adoption and implementation decisions of the closed-loop recycling process by the suppliers of Jaguar Land Rover. The results show that Jaguar Land Rover's relationship as a key customer, facilitation of knowledge sharing among peer suppliers, and resistance from suppliers impacted by changing supply chain relationships played a role in the adoption decisions and adoption timeframe of the REALCAR closed-loop recycling innovation. This has implications for companies and supply chains to consider leveraging the inter-firm relationships embedded in their supply chain networks to accelerate the adoption of circular economy eco-innovations.