Partnerships for a Circular Economy: A Story of Power

Abstract

Company collaborations are vital for enabling the transition to a circular economy, yet unequal power dynamics often shape these relationships. Vertical partnerships, in particular, are frequently presented as a promising model for implementing circular practices. However, their success depends on the effective management of power asymmetries. This thesis explores how companies manage power imbalances in vertical partnerships for circularity. The study draws on a thematic analysis of ten semi-structured interviews with experts representing mainly large corporations, one startup, one public institution, and one research institute, engaged in circular initiatives. The analysis examines how power manifests in partnerships and which strategies companies employ to manage power imbalances. The findings show that vertical partnerships in the circular economy are commonly characterized by asymmetrical power, expressed through economic, symbolic, or structural forms. Three key strategies were identified to manage these imbalances: Strategic Partner Alignment, Collaborative Governance, and Project-Based Collaboration Models. In addition, two paradoxes emerged in the context of circular partnerships: the paradox of trust and the paradox of pace. These insights offer a more critical perspective on how power shapes collaborative efforts in circular transitions and highlight that managing power dynamics is central to achieving sustainable change.