A circular innovation strategy in a supply network context: evidence from the packaging industry

Abstract

Purpose

The research question is how can a company implement a circular innovation in a supply network context? Leveraging the main conceptual and interpretative models of the industrial marketing and purchasing thinking, this study aims to investigate the interplay between the process of circular innovation development and the changes in the structure and dynamics of the supply network in which innovation takes place.

Design/methodology/approach

This research applies a case study design focusing on participant interaction dynamics. The case relates to an industrial company producing an innovative coating solution for compostable packaging. The data used to develop the case study came from multiple sources but primarily from semistructured interviews that cover the implementation of the circular innovation and the configuration of the circular network.

Findings

The dynamics of interconnected relationships can configure a circular network that interconnects business and non business actors through vertical, horizontal and heterogeneous relationships. The network configuration is supported by the new mobilizer actor that facilitates the sharing of circular knowledge within the circular network, together with the sharing of a market orientation and entrepreneurial orientation within the supply network, through the educational learning path.

Originality/value

This paper aims to contribute to a new understanding of how circular innovation can be developed, adopted and diffused. In a network, when circular innovation takes place, the focal issue is not the new product or technology in itself but how such innovation is developed and implemented by and through the reconfiguration of the business and non-business relationships into circular network.

Citation

Cantu, C.L. and Tunisini, A. (2023), "A circular innovation strategy in a supply network context: evidence from the packaging industry", Journal of Business & Industrial Marketing, Vol. 38 No. 13, pp. 220-238. https://doi.org/10.1108/JBIM-07-2021-0325

1. Introduction

In recent years, attention has focused on the transition toward a circular economy that tackles global challenges like climate change, biodiversity loss, waste and pollution (Ellen MacArthur Foundation, 2022). A circular economy requires a new way of thinking (Bocken et al., 2016) based on an economic system of closed loops in which raw materials, components and products lose their value as little as possible. International plans have accelerated the configuration of a new business paradigm based on the realization that resource scarcity is a relevant issue requiring the design of sustainable products and waste reduction (OECD, 2022).

The new way of doing business is founded on circular innovation related to environmentally friendly products (Hopkinson et al., 2018; Korhonen et al., 2018) and is founded on the implementation of the 3-R approach (Rattalino, 2018): reduce (minimum use of raw materials), reuse (maximum reuse of products and components) and recycle (high-quality reuse of raw materials). Based on these principles, circular innovation presents new or improved solutions that preserve resources, mitigates environmental degradation and allows for the recovery of value from substances already in use.

The transition toward a circular economy is a significant challenge that can be managed only through the cooperation of various actors (De Jesus et al., 2019; Ghisellini et al., 2016). In analyzing business relationships, innovation is considered a collective process created through the interplay of different and committed actors, where the innovation activities of one firm must consider the complementary innovation activities of other companies in the network (Cantù et al., 2015). As depicted by the Industrial Marketing and Purchasing (IMP) Group, innovation is generated by interactions and interdependences among various actors in network contexts; it also impacts the structure and dynamics of the networks themselves (Hakansson, 2015; Håkansson et al., 2009).

Based on this framework, our research question is how can a company implement circular innovation in a supply network context?

Leveraging the main conceptual and interpretative models of the IMP thinking, we investigate the interplay between the process of circular innovation development and the changes in the structure and dynamics of the supply network in which innovation takes place. We aim to contribute to the literature as the cross-fertilization between the fields of innovation and circular economy has been largely understudied (De Jesus et al., 2021) and the development of circular opportunities in the supply network is underexplored (Ranta et al., 2019).

As our findings show, the dynamics of interconnected relationships can configure a circular network that interconnects business and non business actors through vertical, horizontal and heterogeneous relationships. The network configuration is supported by the new mobilizer actor that facilitates the sharing of circular knowledge within the circular network, together with the sharing of a market orientation and entrepreneurial orientation within the supply network, through the educational learning path.

The paper adopts a qualitative approach (Dubois and Araujo, 2004) founded on a case study (Barratt et al., 2011) that is related to the SCF company and the configuration of a circular network in the packaging industry. The “Made in” compostable packaging is designed to be, at the end of its life, transferable to wet waste destined for industrial composting, where compost rich in nutrients is produced to promote fertility and the regeneration of agricultural soil.

In Section 2, we report on the streams of literature that can frame and support our research questions and analysis. We review literature on circular innovation and the strategic development of business networks in the form of a supply network, as outlined by the IMP Group. In Section 3, we introduce our methodological approach. In Section 4, we present the empirical evidence and in Section 5, we discuss the results of our analysis. The article ends with conclusions on the limits of the research, theoretical and managerial implications and suggestions for further research as discussed in Section 6.

2. Literature background

2.1 Circular innovation: from internal to external perspective

The circular economy has been considered as a new paradigm aimed at creating new resources while also delivering business value (Türkeli and Kemp, 2018). Circular thinking aims to produce profits from the flow of products and resources over time (Bocken et al., 2016), as it is recuperative or reformative by intent and by strategy (Geissdoerfer et al., 2017; Ripanti and Tjahjono, 2019).

The circular approach is founded on the creation and launch of cleaner products, processes and business models (De Jesus et al., 2021). Thus, the circular economy paradigm requires innovations made up by environmentally friendly products founded on eco-innovation (Bag et al., 2022; Hopkinson et al., 2018).

The European Commission (EC) defines eco-innovation as:

“[…] resulting in or aiming at significant and demonstrable progress towards the goal of sustainable development, through reducing impacts on the environment, enhancing resilience to environmental pressures, or achieving a more efficient and responsible use of natural resources” (EC, 2011, p. 2).

From a general perspective, eco-innovation relates to products and processes characterized by environmental sustainability. Sustainability is simultaneously a source of innovation and a driver that makes it possible to develop a sustainable economy (Porter and Kramer, 2011). Some studies have investigated the relevance of sustainability as a driver of innovation (Adams et al., 2016), whereas others have instead highlighted how sustainable development can be achieved through innovation (Silvestre and Ţirca, 2019; Xavier et al., 2017; Schiederig et al., 2012).

It follows that the circular economy is an innovation-driven phenomenon also largely influenced by the ongoing sustainability transition (Esposito et al., 2018; Geissdoerfer et al., 2017; Spring and Araujo, 2017). The circular economy depends on sustainability but sustainable innovation is not always circular. Circular innovation relates to the zone of overlap between eco-innovation and the circular economy principles identified in reduce, reuse and recycle (Patwa et al., 2020). Circular innovation involves pro-environment concepts, improved environmental performance and clean results, socially responsible benefits and the holistic transformation required to introduce a circular business model (De Jesus and Mendonça, 2018).

The analysis of circular innovation applied to products requires considering the process of its development (Crawford and Di Benedetto, 2021). In general terms, this process is mainly considered related to the micro-firm perspective founded on the assumption that the firm, as an organization, is characterized by an articulated purpose (strategy) and by the mechanisms for achieving it (structure and processes) (Miles et al., 1978).

However, launching of an innovative product on the market depends not only on the internal processes of the firm but also on the external innovation processes (Hagy et al., 2017). In addition, the innovation development is strictly related to the process of innovation adoption and diffusion. As previous research (Frambach and Schillewaert, 2002, p. 163) has stated:

“[…] adoption refers to the decision of any individual or organization to make use of an innovation, whereas diffusion refers to the accumulated level of users of an innovation in a market (Rogers, 1995).”

These considerations shed light on the relevance of an external orientation that, in general terms, concerns interorganizational collaborations (Wegner et al., 2022; Dagnino et al., 2016). In particular, circular innovation, as eco-innovation, requires changes considering not only the company level but also the supply chain level (Ghisellini et al., 2016).

Shifting the attention from general collaborations to the Industrial Network, innovation is generated and developed in a network setting (Håkansson and Snehota, 1995); consequently, innovation is determined by the network in which the firm is embedded (Möller et al., 2005). In IMP studies, eco-innovation has mainly been investigated by considering sustainability principles. Focusing on the Industrial Network, as stated by Johnsen et al. (2017), sustainability has been analyzed since Wood (1995) used IMP concepts to investigate ethical issues in buyer–seller relationships. By leveraging their interpretative models, IMP scholars demonstrated that the interaction approach is “a useful lens through which to analyze sustainability within networks” (Meqdadi et al., 2017, p. 62). As highlighted by IMP scholars, the eco-dimension is a relevant feature of physical resources, facilities and products (Baraldi et al., 2011). At the same time, ecological solutions require creating closer connections between previously separated networks (Baraldi et al., 2011).

More recently, some IMP scholars have demonstrated how collaboration allows for implementing circular strategies (Aarikka-Stenroos et al., 2022) such as the closing strategy, which comprises recycling measures and is aimed at closing the loop between post-use and production. Considering interorganizational collaboration as the relevant driver for circular strategies, the latter require focused attention on the transition from the supply chain to the supply network.

2.2 Circular supply chain perspective

Over time, the emergence of ecological issues – and, more recently, the circular economy transition – has outlined the configuration of a circular supply chain management (CSM). As defined by Farooque et al. (2019, p. 884), “circular supply chain management comprises the integration of circular thinking into the management of the supply chain and its surrounding industrial and natural ecosystems”. CSM aims to minimize the environmental impact by optimizing resource utilization throughout the product lifecycle (Genovese et al., 2017).

In this vein, CSM addresses circular flow, or the emergence and reemergence of value, from materials and resources in the supply chain (Geissdoerfer et al., 2018; Haneef et al., 2016). Similar to a green supply chain, in circular supply chain, firms cooperate with the suppliers to improve the environmental performance of products and manufacturing processes (Simpson and Power, 2005; Zhu et al., 2008; Carter and Rogers, 2008). Similar to sustainable supply chain management, in circular supply chain management, a key issue is recognized in the cooperation with stakeholders within and beyond the supply chain (Seuring and Müller; Hagelaar and Van der Vorst, 2002; Hassini et al., 2012). This wider interorganizational perspective has been increasingly adopted by scholars who have promoted a network approach to sustainable innovation in supply chains (Van Bommel, 2011; Roscoe et al., 2016; Keränen et al., 2023). The relevance of the coordination and organization of activities among multiple supply chain actors has also been emphasized by the IMP Group in supply network research (Meqdadi et al., 2017).

2.3 Supply network dynamics and sustainable innovation

IMP studies on business networks have largely inspired and also contributed to the development and implementation of the concept of supply networks as business contexts of interconnected customer–supplier relationships driven by the need to develop and deliver value to customers (Harland, 1996; Lamming et al., 2000; Gadde et al., 2010; Johnsen, 2018). Some IMP studies have highlighted that sustainability requires more intense collaboration and wider relationships considering new processes, as well as information sharing in further upstream and downstream perspectives (Vildåsen and Havenvid, 2018). In fact, as demonstrated by Frostenson and Prenkert (2015), sustainable supply networks are not limited to the supply chain and the unilateral top-down control of supply chains could be problematic. Adopting a wider perspective, Tate et al. (2013) demonstrated that relationships’ embeddedness result in the more effective diffusion of environmental business practices across supply networks. In the context of overlapping networks, firms take strategic actions, which change the interconnections and interdependencies between two or more networks (Mattsson, 1987).

The implementation of sustainable innovation strategy in networks is more than an incremental change. Due to their complexity and uncertainty related to their multipurpose nature, sustainable innovations demand cross-sector collaboration and the restructuring of existing value networks (Keränen et al., 2021). The sustainability strategy relates to the development of new products and new production processes that involve multiple actors (Meqdadi et al., 2017; Seuring and Müller, 2008a, 2008b; Vachon and Klassen, 2006) considering that it is difficult for a single firm to create a new technology, or business, for sustainable innovation (Keränen et al., 2021). The wider network perspective requires considering the actor responses to an environmental change and analyzing the multiple organizations involved in the sustainability topic, such as political organizations (Hadjikhani et al., 2008) and civil society (Ritvala and Salmi, 2010).

The sustainability strategy generates changes founded on actor embeddedness, resource interaction and the inclusion of indirect effects (Öberg et al., 2012). These changes also impact the development and diffusion of the innovation itself (Keränen et al., 2021) and determine market change (Keränen et al., 2023). In particular, at the supply network level, a tight interconnection is observed between sustainable innovation and supply network dynamics. On one hand, changes to existing value activities and relationship structures as well as new actors with new value activities and relationship connections are required for innovation (Keränen et al., 2023). On the other hand, innovation development enacts changes in the structure and dynamics of the network of actors and their interactions and interdependences (Chou and Zolkiewski, 2012). As stressed by IMP studies, due to the interdependencies of relationships, a change in one relationship often spreads to other relationships through interaction, affecting the whole network. Innovation is a great source of change in networks, impacting network structures and dynamics while also being affected by the interaction processes themselves. Network dynamics can be related to the fact that relationships are based on active actors continuously searching to discover new ways of combining heterogeneous resources and linking their activities to other actors while searching for new activity links and changes in them. In addition, actors make decisions and interact to achieve both individual and collective goals and, in relation to counterparts in exchange situations, they are constantly seeking to improve their position; this is also done by introducing change into relationships with the counterparts (Håkansson and Snehota, 1995).

Thus, two dimensions used to investigate network dynamics are the position and the role of actors (Anderson and Katz, 1998; Johanson and Mattsson, 1992). The position is considered for examining the network structures generated by the relationship dynamics. In addition, the understanding of these dynamics is allowed by studying the roles of the involved actors. The role is considered to be the dynamic aspect of the position; therefore, it involves function, adaptation and process (Anderson and Katz, 1998).

Following the interaction and network literature, a company’s strategizing in a network context is a matter of changing the network and the company’s position in it. To achieve this, companies must seek to influence other companies through relationships and mobilize them in a desired direction. Hence, actors reframe the structure of the network through interaction; meanwhile, the structure of the network somehow addresses or influences the network dynamics.

In a business network context, some actors continuously seek to combine resources and activities in new ways, other actors accept and adapt to change and still others resist and search for stability (Abrahamsen et al., 2012). Thus, there are always forces within the network that seek to stabilize the existing actor bonds, resource ties and activity links as well as forces that look for opportunities to improve their position in relation to important counterparts by looking for opportunities to create changes in the relationships and the network (Håkansson and Snehota, 1995).

2.4 Theoretical framework

In the transition from a linear to a circular system (Saavedra et al., 2018; Bag et al., 2022), eco-innovation has been identified as key driver founded on environmental sustainability. Previous research has outlined the relevance of cooperation to develop sustainable innovation, adopting a linear systemic approach concerning the supply chain (Walker and Laplume, 2014). However, the linear approach presented some limitations as depicted by IMP scholars who highlighted that sustainability issues require the involvement of actors belonging to the network (Keränen et al., 2021; Frostenson and Prenkert, 2015; Gadde et al., 2010; Vildåsen and Havenvid, 2018). The latter is characterized by a dynamic that depends on actors’ position and role and is founded on actors’ interactions (Anderson and Katz, 1998; Abrahamsen et al., 2016). As previous research anticipated, the circular economy depends on sustainability but sustainable innovation is not always circular. Circular innovation relates the zone of overlap between eco-innovation and the circular economy principles identified in reduce, reuse and recycle (Patwa et al., 2020).

Therefore, the theoretical framework combines the circular innovation strategy (from internal to external perspectives) and the network dynamics to investigate the configuration of a new circular network. We considered the Industrial Network framework as it allowed us to operate at a higher level of aggregation than other research approaches. We assumed that the implementation of a circular innovation strategy requires a new configuration of the supply network and a new network mobilization approach (Figure 1). Network mobilization concerns how companies mobilize other companies in their surrounding network to work within the plans they develop (Mouzas and Naudè, 2007).

In the research reported in our paper, we develop an in-depth analysis of how a company strategizes in its supply network to improve its circular innovation; we also stress how supply networks dynamics contribute to the generation and dissemination of innovation oriented to the circular economy, thereby generating the wider circular network dynamics. The paper adopts a longitudinal perspective to investigate the launch and adoption of a compostable solution.

3. Methodology

3.1 Research design

This research applies a case study design focusing on participant interaction dynamics. A case study approach is appropriate for our research question as it allows for a richness of data to be considered within complex changing contexts (Yin, 2009). As Siggelkow (2007) explained, “a single case study is very special in the sense of allowing one to gain insights that other organizations would not be able to provide” (p. 20). In addition, this approach aligns with similar research designs that examine the links between the actor and the network-level strategy (Harrison and Prenkert, 2009).

To develop a holistic understanding of the complex interorganizational relationships, qualitative research (Eisenhardt and Graebner, 2007; Dubois and Gadde, 2002) is based on semistructured interviews. A systematic combining process (Dubois and Gadde, 2002) is adopted as the theoretical framework, the empirical fieldwork and the case analysis evolve simultaneously (Järvensivu and Törnroos, 2010; Dubois and Araujo, 2004; Piekkari et al., 2010). Initially, we focused our attention on innovative product development. After the preliminary interviews, we identified the configuration of the circular supply chain and its evolution to the supply network; thus, we investigated this topic by adopting an empirical and theoretical point of view. Following a portfolio approach (Ritter et al., 2004), the case relates to an industrial company that implemented a circular innovation strategy in which collaboration played a key role. The case boundaries are defined as the company’s collaborations, considering the shift from supply chain to supply network and the wider circular network.

3.2 Case study selection

The case was chosen in the light of its distinctive features: SCF company is considered a benchmark in its industry and the firm is the first mover in circular packaging at national level. In addition, SCF has been the activator of the first circular supply chain in the national packaging industry. The heavily resource-intense industry of plastics has attracted the attention of firms, public actors and society as a whole. Plastic is widely used in all sectors of the economy and plastic packaging occupies a prominent position in the global context, presenting relevant challenges.

Since its foundation, SCF company has been oriented to high innovation based on new technologies, new solutions and patents related to the packaging industry. SCF is a new brand for the packaging market but with 70 years of history, as it belongs to a group founded in 1940.

From the beginning, particular attention has been focused on the relationship with the business partners of the supply chain, particularly suppliers. In 2019, the SCF Board of Directors approved the Group Supplier Code of Conduct with the aim of expressing the values that inspire the group in the behavioral principles that should guide the action of the suppliers themselves in the context of their business, with a particular reference to respect for the environment.

SCF company has always paid a great attention to the development of innovative flexible packaging solutions oriented to environmental issues. SCF mainly provides advanced functional solutions for food preservation. Following the innovation orientation and sustainability orientation, SCF activated the first compostable supply chain in the packaging industry, at national level, characterized by the “made in” approach.

3.3 Data collection process and analysis

3.3.1 Sample

Data was collected mainly through a series of ongoing observations over a period from January 2020 to December 2021, during which time a total of 11 semistructured interviews were conducted with managers of participating organizations and five interviews were conducted with experts of sustainability and circular innovation (Table 1).

We identified the key firms using snowball sampling. The first step consisted of interviewing managers of the group and SCF to better understand the potentialities of the innovative product. In the second step, the key referents of SCF presented us the key business partners of the compostable supply chain and the application of compostable packaging. Using this feedback, we developed the other interviews. In addition, to go more in depth into circular innovation processes, we conducted interviews with experts in these topics.

3.3.2 Data collection

The data used to develop the case study came from multiple sources (Voss et al., 2002; Yin, 2009) but primarily from semistructured interviews with the focal firm (SCF) and its main business partners involved in the compostable supply chain and in the wider supply network and circular network. Interviews typically lasted from 45 min to 2 h and were held locally or through online video calls. Interview guides were prepared before each interview and were then adjusted based on the outcomes of the previous interviews. A semistructured interview guide was developed based on a systematic review of the literature (Eisenhardt and Graebner, 2007).

The semistructured interviews were based on open-ended questions to support the exploratory aim of the study (Patton, 2002). The interview questions covered key issues related to circular innovation strategy, circular management practices, changes in business relationships and in sustainable and circular innovation strategy, and dynamics in the supply chain and supply network. Respondents were asked to identify the resources shared and combined as well as to describe the joint activities developed through interconnected business relationships.

Firms’ and industry websites were analyzed before the interviews. The large set of secondary data also included presentation materials as well as annual reports, industry reports, media articles and press releases, marketing materials and brochures and other webpages concerning their products, solutions and offerings. Such material supported the interview data in building a comprehensive picture (Makkonen et al., 2012) of the business relationships dynamics. The secondary data sources were important because they provided a reasonably good understanding of the context (Johnston et al., 1999).

3.3.3 Data structure

The mix of primary and secondary data sources collected allows for enhancing the analysis (Aarikka-Stenroos et al., 2017). The use of multiple data sources produced increased reliability for the data and stronger substantiation of the analysis. Concepts were drawn from both the supply chain and supply network literature focused on circular innovation to inform the analysis. Following the methodology outlined by Gioia et al. (2013), we started to build our theory by categorizing the data based on the management challenges the key informants were talking about (first-order concepts; Table 2).

We next created broader themes based on our interpretations of the difficulties expressed by the managers (second-order themes). Finally, we searched for relationships between the second-order concepts in the data structure and identified the connections.

We also conducted a literature review while concentrating on circular innovation strategy, the shift from supply chain to supply network and network dynamics. We analyzed the process of innovation development and diffusion, investigating the following stages: innovation development in a coating solution (packaging component), innovation development in complementary materials, innovation development in compostable packaging configuration, innovation in compostable packaging adoption and innovation in compostable packaging diffusion. Focusing on the Industrial Network approach, for each stage, we investigated the actors (A) involved, the resources provided and the activities developed (AC). Activities mainly relate to joint activities (JA). The analysis considered technological resources (TR) and organizational resources (OR) that have been combined, through interconnected business relationships, based on the configuration of the supply network and the wider circular network.

4. Findings

Since its foundation, SCF company has paid great attention to environmental issues. The first product line launched by SCF relates to active packaging (ethylene free), whereas the second product line concerns eco-friendly packaging (transparent oxygen barrier). The most recent product line relates to compostable flexible packaging; the special coating offers the functions of compostable packaging and its application to chilled/refrigerated products, shelf-stable products and organic products.

To launch the innovative coating solution, SCF company paid particular attention to the configuration of business relationships from a supply chain perspective. Specific materials and components were combined to produce and launch innovative compostable packaging generated by the supply chain. Considering the stages of innovation development, adoption and diffusion, the company activated the configuration of a supply network, whereas the wider circular network involved vertical, horizontal and heterogeneous relationships.

4.1 Innovation development in packaging component (2018)

In 2018, firms’ and consumers’ growing demand for sustainable packaging, together with the new legislation concerning the reduction of plastic as well as changes in society, supported SCF’s decision to ideate an innovative coating solution for green packaging in the food industry. The development of the coating solution required SCF (A) to make high investments in R&D and new technology. The company developed a water-based deposition technology (TR) that uses patented functional lacquers to enable the design of a high barrier of active packaging in compliance with the principles of the circular economy. Thanks to this technology, the company launched compostable coated films based on its previous eco-friendly packaging competences (OR).

Initially, the coating solution for compostable packaging faced some obstacles, as customers (converters) did not have an in-depth understanding of the potentialities of the innovative coating solution and, thus, the impact on their production and turnover. At the same time, some criticisms were discovered in the configuration of relationships with the providers of complementary materials with which the coating solution should be combined to realize the compostable packaging. Consequently, SCF decided to revise its business relationships to configure the supply chain for a new compostable packaging for the food industry that had been missing until then.

4.2 Innovation development in complementary materials (early 2019)

SCF company considered its previous business relationships to select the key suppliers of relevant materials required to configure the innovative-coated films (Appendix). In 2019, from an upstream perspective, SCF enhanced its long-term relationship with NOV (A), the provider of biomaterials and bioplastics. Both firms are oriented to innovation and high levels of R&D investments. Both firms were interested in the development of circular innovation packaging considering its potential for their market and for society. SCF worked together with NOV (material provider, A) to develop solutions to meet the growing demand for materials with a lower environmental impact and high functional performance (JA). The new family of biodegradable and compostable bioplastics provides solutions for specific environmental problems, such as soil and water pollution, while combining product quality and performance with an efficient use of resources. NOV provided the biomaterial (TR) and technical knowledge (OR), promoting an approach to the bioeconomy based on the efficient use of renewable resources. SCF brought into the relationship the experience of its laboratories and a team of researchers and technicians (OR) with cutting-edge instrumentation (TR) to study the problems of the films in detail, as such films are not usually controlled in the flexible packaging industry in this way (Appendix).

From the vertical upstream perspective, SCF activated a relationship with TIP (film maker, A) that was involved in the supply chain through NOV, as in the past, the two firms has cooperated with a firm acquired by SCF. TIP specializes in polyethylene-blown film extrusion in the food, industrial and pharmaceutical flexible packaging markets. The film maker (TIP) brought to the relationship its high commitment to R&D (OR), combined with a focus on the market evolution (OR). The film maker has directly faced the plastic topic, concentrating its R&D efforts to offer circular economy solutions to the flexible packaging market (TR). SCF, NOV (material provider) and TIP (film maker) worked together to design and develop the innovative film for the brand owner (JA). Based on joint activities with NOV and SCF, the film maker was able to realize the innovative film, which SCF considered for its innovative solution offering compostable-coated films.

Based on an in-depth market analysis, SCF identified additional critical elements related to its potential customers (converters) that were not ready for innovation. To support an effective launch of its solution, SCF reconfigured the business relationships with its customers (converters), selecting, from a downstream perspective, those more oriented to circular innovation.

4.3 Innovation development in a packaging configuration (late 2019)

From a downstream perspective, in 2019, SCF company announced the beginning of a new partnership with SAC (converter, A) for the production and promotion of the new line of compostable packaging solutions. SAC is a manufacturer of flexible paper, aluminum and plastic packaging. The firms, which operate at two different levels in the supply chain, brought together their expertise in materials, technologies and scientific analysis as part of a vertical collaboration to meet market demand more rapidly (JA). As stated by the CEO of SCF “this partnership was born by bringing together the 70-year experience in gas management and converting technologies to create the first packaging solutions that can really make a difference”. Meanwhile, the CEO of SAC explained that “the strategic alliance with SCF allows us to design and create sustainable solutions”. The converter was chosen by SCF for different reasons:

“SCF wanted to collaborate with a local company and the company was present with unique proximity […]. To activate close partnerships, it is important to be close, [and] logistics has its role”.

SAC provided skills in lamination, printing, finishing and adhesives (OR). It has developed and tested a solution based on paper and biopolymer, with high barrier properties (TR) (Appendix).

Also from a downstream perspective, SCF and SAC involved IMI (packaging machinery provider, A) in the compostable supply chain due to its wide range of packaging solutions. IMI’s portfolio included packaging machinery for modified atmosphere applications, product-handling solutions and fully automated packaging lines (TR). IMI has technological laboratories and testing areas dedicated to the research on sustainable materials and technologies that allow the production optimization processes in packaging lines (OR). SCF together with SAC (converter) and IMI (packaging machinery provider) validated the solution (JA).

The configuration of the compostable supply chain can be described in terms of strong interconnections for both upstream (material providers and film makers) and downstream (converters and providers of automated solutions for packaging) perspectives (Figure 2).

The CEO of SCF stated that the collaboration along the value chain comes:

“[…] first of all from the opportunity to speed up the offer to the market of innovative solutions validated on all stages of the process. We are upstream of the production chain, compared to the end user, and when we propose innovative solutions we need to deal directly with our customers that is not according to a typical supplier-customer relationship, but in partnership-relationship. […] In fact the enhancement of the characteristics of our products can only take place if these products are used correctly, and if they contribute to a correct design of the finished product, that is the packaging”.

4.4 Innovation in compostable packaging adoption (late 2019 to early 2020)

In late 2019, the first brand owner belonging to the food industry required specific information on compostable packaging to NOV, which introduced SCF; the latter activated the other members of the compostable supply chain. The configuration of selected business relationships allowed for the sharing of resources (tangible and intangible) and the development of joint activities to combine different components offering innovative compostable packaging (Appendix).

Considering their resources, each actor provided tangible resources (TR) related to the innovative product based on innovative technology, such as innovative material (NOV), innovative films (TIP-film maker), new coating technology (SCF), innovative packaging solution (SAC-converter) and new packaging equipments (IMI – packaging machinery provider). In addition, each actor provided specific competences, such as in-depth technical knowledge (OR) ranging from raw materials to their methods of use (SCF), expertise and specializations, equipment and facilities ranging from laboratory-scale activities to innovative pilot plants (NOV), interest in environmental topics (TIP- film maker) and skills in lamination, printing and finishing (SAC – converter and IMI – packaging machinery provider).

Different from the initial hypothesis, the development of the new customized compostable packaging required considering not only dyadic relationships from the vertical perspective but also adopting a wider systemic approach. Each actor of the compostable supply chain interacted and cooperated with all actors belonging to the supply chain. This new managerial approach generated a shift from a supply chain to a supply network (Figure 3).

These dynamics activated a reconfiguration of traditional vertical relationships. Each actor of the supply chain developed a relationship with the customer/user: the brand owner. Adopting the traditional supply chain perspective, the brand owner interacts only with the converter and with the packaging machinery provider. Considering the supply network and the systemic approach, all actors interact with the brand owner and among themselves.

Several meetings involving all actors of the supply network were planned with the brand owners to better understand the customers’ needs and insights and to develop a customized compostable packaging solution. Based on these insights, the first compostable packaging related to a compostable supply network has been adopted by a brand owner to launch a new line of (brand owner, A), which introduced its products (TR) and competences related to circular innovation (OR).

4.5 Innovation in compostable packaging diffusion (late 2020 to 2021)

Since first building a relationship with the first brand owner, to effectively launch the innovative packaging to the market, SCF company has activated and enhanced heterogeneous relationships from the horizontal perspective as well.

In the process of circular innovation development, a critical dimension recognized by SCF related to the international certification of compostable packaging. SCF improved its participation in consortiums such as the European consortium (A) that aims to reinforce the performance of flexible packaging in the circular economy by designing and advancing better system solutions identified through the collaboration of companies representing the entire value chain. The European consortium aims to provide a circular economy roadmap for flexible packaging (OR), including widely recognized design guidelines (OR) and a robust approach to measure and demonstrate the significant value flexible packaging adds to the circular economy. The consortium grants to its members the possibility of developing relationships with heterogeneous organizations (material producers, film producers, brand owner and retailers, collectors, sorters and recyclers, users and others) (OR) to depict the guidelines for an innovative certification (Appendix).

In addition, SCF cooperated with European organization of plastic recyclers (A) to sustain the guidelines for compostable certification (JA). The European organization promotes the use of quality recycled plastic and offers concrete advice on developing innovative, recyclable products and packaging (OR). The organization represents European plastics recyclers that reprocess plastic waste into high-quality material destined to produce new articles.

Another point that required SCF’s relevant attention related to the research. In 2020, SCF enhanced its relationships with B. University to enable new research projects with academia. The tasting tests carried out by P. University demonstrated the high quality of the product characterized by compostable packaging (OR). The purpose of this university is to combine sciences and gastronomic practices with a focus on environmental sustainability.

In addition, SCF activated relationships with associations participating in different conferences and meetings to share knowledge related to circular innovation and to strengthen the attention focused on this topic. SCF cooperated with an international nonprofit association (A), committed to giving the right value to food while considering the environment and ecosystems (OR) and with a national nonprofit association made up of citizens, supported activities focused on the protection of the environment (OR).

Through these relationships, SCF activated relationships with new partners. SCF was involved in several events. Among these, “Food Loss and Waste” was organized by an industrial association (A). In addition, SCF cooperated with a trade association that promotes the sharing of knowledge related to compostable packaging (OR).

In 2021, SCF also developed a relationship with a certifying agency (A) for the recognition of the certification award (OR) (Figure 4).

Moreover, the brand owner improved relationships with customers, who were also considered by other actors of the supply network.

Nowadays, compostable packaging has been adopted by different food brands launching new products lines and considering new actors, such as retailers that provide related knowledge to their customers (O) and other business organizations such as recycling service providers (A) related to the municipality, which support the management of circular economy issues (OR) while overcoming challenges in consumers’ habits (OR).

5. Discussion and theoretical contribution

As outlined in the literature, circular innovation combines sustainability and the 3R approach based on the implementation of the key principles of reduce, reuse and recycle (Patwa et al., 2020). The complexity of circular innovation makes it necessary to investigate its development in greater depth by adopting a relational approach. In addition, the linearity of the supply chain, as stated by IMP scholars, could present some limitations that require adopting the wider perspective of a supply network. Given the peculiarities of circular innovation and relationships dynamics, the wider network boundaries have been delineated.

The case analyzed allowed us to develop a deeper understanding of what it actually means for a firm developing an innovation strategy oriented to a circular economy. In particular, such an effort started with the focal company’s launch of an innovative packaging component but launching a compostable packaging solution and supporting its adoption and diffusion required being combined with other complementary materials and competences from heterogeneous actors. This process fed the configuration of a circular network founded on interconnected relationships with business and non business actors through a new mobilization approach.

Combining the theoretical framework and empirical evidence also allowed us to develop the following empirical framework (Figure 5).

5.1 New supply network configuration: dynamics in upstream and downstream vertical relationships

The implementation of a firm’s circular innovation strategy is founded on the shift from an internal company perspective (mainly related to R&D investments, patents and technology) to an external one, generally related to the supply chain (Rodríguez-Espíndola et al., 2022). The mobilization of actors and the sharing of the same vision for sustainable development require investigating actors and their relationships in the supply chain. Moreover, as anticipated by Frostenson and Prenkert (2015), unilateral top-down control of supply chains could be problematic, thereby introducing the potential for wider interconnected business relationships. In this way, SCF enhanced vertical relationships with key actors of the supply network.

In the first stage of innovation strategy development (innovation in packaging component), SCF focused its attention only on its own product and innovative technology (company perspective) (Appendix). Customers’ (converters) mistrust of the new product required the configuration of business relationships with other companies in the supply chain. The development of a circular innovation strategy introduced changes in vertical business relationships considering that the innovative component should be integrated with complementary materials to configure a packaging solution. From a general perspective, the integration process/activity is founded on relationships between actors belonging to consequential stages of the supply chain. As the findings demonstrated, the complexity of a circular solution requires reconsidering the business relationships from a wider and more dynamic upstream and downstream perspective (vertical relationships) while also activating new relationships with actors from inconsequential stages of the supply chain. In this vein, SCF activated relationships with different members of the supply chain, facilitating their interconnections in a supply network configuration. This new configuration required the activation of multiple relationships with the user (brand owner) as well.

In addition, as outlined by IMP scholars, relationships’ evolution considers a long-term perspective (Håkansson et al., 2009). Previous relationships can facilitate the activation of new relationships and, thus, new business opportunities. In these terms, SCF exalted the long-term relationship with a material provider (NOV) that allowed for the enhancement of a relationship with the film maker (TIP).

The key actors involved in the supply network provided specific resources and developed activities through interaction (Håkansson et al., 2009). The circular solution is characterized by high complexity considering that the development of a circular product requires specific materials, technology and machinery (technological resources) as well as mainly heterogeneous competences (organizational resources). These latter, provided by actors of the compostable supply network, have enabled the finalization of the innovative compostable packaging, considered to be output generated by the interconnected business relationships.

As depicted in previous research (Inigo et al., 2020), the innovation outcomes can be improved by collaboration with external stakeholders. In this case study, the combining of resources was founded on, and simultaneously allowed for, joint activities and their outcome for circular innovation strategy: an innovative coating product, innovative coated films and innovative packaging configuration (Appendix).

The dynamics of business networks reflect a continuous organizing networking process based on new combinations of actors, activities and resources. We observed an innovation dynamic that is taking place in a supply chain, gradually transforming itself in a wider supply network. Thus, it follows that:

P1:

Circular innovation development is founded on the interconnected and dynamic business relationships that configure the supply network. In addition, these vertical relationships require considering the involvement of the users and some dynamics that relate to non consequential stages of the supply chain.

Furthermore, the development of a circular innovation strategy is founded on, and simultaneously generates, new dynamics with heterogeneous stakeholder.

5.2 Configuration of a circular network: a holistic perspective

Considering the network dynamics, new actors belonging to SCF’s network horizon enter its network context. The network context outlines all firms and relationships considered most relevant by the focal firm (Håkansson and Ford, 2002; Nyström et al., 2008; Håkansson and Snehota, 1989), whereas the network horizon is defined in terms of network boundaries that characterize the focal firm (Holmen and Pedersen, 2003). The development of a circular strategy in the network also involved the activation of new horizontal and heterogeneous relationships.

Strategizing in the business network requires cooperating with competitors to share the recognized production guidelines to facilitate innovation adoption and diffusion. Interconnected business relationships support the sharing of knowledge and best practices that are relevant to sustain the introduction of a new paradigm, such as the circular economy. The relationships developed with the European packaging consortium and the European plastic recycler organization allowed SCF to participate in the process of guidelines development for a new certification related to a circular innovation product while also cooperating with competitors.

In addition, the development of a circular innovation strategy is founded on relationships with heterogeneous actors, such as universities (research partners), to improve the effectiveness of innovation. Moreover, the circular innovation strategy should consider relationships with different non business actors that can sustain and promote knowledge diffusion concerning the new paradigm of the circular economy. In this vein, SCF cooperated with associations oriented to sustainability terms. The firm participated in different events organized by the industrial associations and cooperated with national packaging consortiums and national trade associations. These relationships sustained innovation diffusion through the strengthening of a culture oriented to the circular economy.

As depicted by the findings, circular innovation adoption and diffusion are founded on heterogeneous actors that organize resources by selecting and combining them to develop activities. Thus, it follows that:

P2:

The development of a circular innovation strategy is based on relationships with heterogeneous actors, not only those belonging to the supply perspective. A multistakeholder orientation supports the circular innovation strategy facilitating innovation diffusion through vertical, horizontal and heterogeneous relationships. This perspective enhances the shift from the supply network to a circular network that involves business and non business actors.

5.3 New educational learning path to improve actors’ commitment: the mobilizer role

According to Chakrabarti et al. (2020), the open perspective must be orchestrated. Network orchestration involves different activities for formulating the network and managing the value-creation and value-capture processes (Hurmelinna-Laukkanen and Nätti, 2018). In this vein, the mobilization of actors involves the coordination of different actors in a specific direction. Mobilization is considered the outcome of dynamic processes (Mouzas and Naudè, 2007), as through interaction the actors can shape guidelines for their business relationships. In this vein, the mobilization process is also strictly related to network management, configuring the direction of the collaboration, and network governance, concerning rules to achieve collective goals in an effective way (Moller and Halinen, 2017).

The mobilizer, as orchestrator, is the focal organization characterized by a strong relational position in the network, such as wide visibility, attractiveness and connectedness (Gilsing et al., 2016). As anticipated, the role is considered the dynamic aspect of the position and, thus, involves functions (Anderson and Katz, 1998).

Based on the previous business relationships and the resources shared and combined, SCF played a relevant role that facilitated the interconnected business relationships to develop and launch the compostable packaging. The orchestrator allows firms to achieve common goals (Perks et al., 2017). SCF has been interested in improving the competitive advantages and profitability by leveraging the network it coordinates (Hurmelinna-Laukkanen and Nätti, 2018). SCF can be considered a knowledge enabler that supported the sharing of knowledge related to circular innovation, considering the technical dimensions and cultural dimensions. Based on its network position, SCF improved its suppliers’ and its customer-partners’ knowledge related to the main benefits and potentialities provided by the circular economy perspective. In addition, SCF supported the sharing of knowledge related to the potentialities of circular innovation through relationships with heterogeneous actors, considering its cooperation with competitors, universities, associations, consortiums and other organizations.

The new compostable packaging requires continuous simultaneous interaction among the network actors. Such interaction is also reinforced by a strong educational learning activity and path, promoted by SCF itself. Through this activity and path, the new packaging reinforces the content and leads to the commitment to the circular economy. The commitment can sustain actors in pursuing the same circular goals, combining their own goals and the goals of the network. Thus, it follows that:

P3:

The circular innovation strategy of the firm can influence and be influenced by the circular innovation strategy of the circular network as a whole, based on the improvement of actors’ commitment. The latter is supported by the mobilizer through its new role as a knowledge enabler that sustains the sharing of the circular knowledge and circular culture.

The strategy of a single company can be interpreted as part of the process interaction within the network (Ford and Mouzas, 2008). In this vein, the firm’s circular innovation strategy becomes a circular innovation strategy of the circular network as a whole. A firm can effectively introduce a circular innovation strategy only if the network as a whole recognizes the value of these solutions. The circular innovation strategy related to the product becomes the circular innovation strategy related to the network.

5.4 Network mobilization through a new orientation

The educational learning path configured by the mobilizer, founded on the sharing of circular knowledge, has been combined with the sharing of a new orientation. The circular innovation strategy required considering the point of view of both customers, such as converters for the coating firm and users (brand owner). This is strictly related to market orientation, which is defined as the analysis and satisfaction of customer needs (Naidoo, 2010; Day, 1994). Market orientation involves the acquisition, sharing and use of market and customer knowledge (Weerawardena, 2003) as well as the ability to respond to customer needs through the generation of a value solution (Kohli et al., 1990; Hult and Ketchen, 2017). In particular, customers’ involvement in new product development improves knowledge exchange (Coviello and Joseph, 2012).

The new market orientation is founded on and simultaneously allows for the reconfiguration of the supply chain into the supply network and the consolidation of a systemic approach to manage relationships with the brand owner. SCF adopted a new pull approach. The firm developed activities to attract the attention of brand owner (users) to sustain its demand of product to converters (customers). Going further in depth, the circular innovation strategy can be positively influenced by the investigation of the market point of view by each actor of the supply network.

Moreover, SCF adopted an entrepreneurial orientation that is strictly related to a strategic attitude involving risk-taking and a proactive and innovative approach (Hoskisson et al., 2011). This orientation may enable the undertaking to achieve positive results through networking (Fink et al., 2020) that also facilitate higher levels of innovation (Farooque et al., 2019).

As depicted by findings, the mobilizer sustained the sharing of these orientations within the actors of the supply network through joint activities. The interaction with heterogeneous actors supports their mobilization in a desired circular direction. Thus, it follows that:

P4:

The circular innovation strategy is based on the sharing of a market orientation and an entrepreneurial orientation within the actors of the supply network. The educational learning path configured by the mobilizer facilitates the sharing of these orientations.

The educational learning path facilitated by the mobilizer is based on the sharing of circular knowledge within the circular network as well as the sharing of market orientation and entrepreneurial orientation within the supply network. These two levels of the educational learning path enhance the circularity from firm to interorganizational relationships and from relationships to firm, considering the improvement of the firm’s capabilities. In addition, the circularity relates to the shift from the supply network to the circular network as well as the changes introduced by the supply networks based on the relationships characterizing the circular network.

6. Conclusions and managerial implications

6.1 Theoretical implications

Innovation for circular goals is one of the major challenges faced by companies today and in the near future. As the findings indicated, the development of a circular solution is generated by dynamic and interconnected business relationships characterizing the supply network that involves the integration of complementary components and mainly complementary competences. The configuration of the supply network overcomes the linearity of the supply chain (Lüdeke-Freund et al., 2019). Such reconfiguration involves the key actors (Lacoste, 2016) that can be selected, as shown by results, by a new actor: the mobilizer. The network position of the mobilizer allows its identification as a facilitator of business relationships (Perks et al., 2017). In addition, considering the complexity of circular innovation, the mobilizer could support the sharing of circular knowledge from the upstream–downstream perspective of vertical relationships, while also introducing new actors such as users and new dynamics that allow for the reconfiguration of the supply chain into supply network.

Furthermore, the mobilizer could facilitate the sharing of circular knowledge in horizontal and heterogeneous relationships. The relevance of new actors and new relationship dynamics are the basis for the configuration of a circular network that overcomes the boundaries of the supply network, considering heterogeneous stakeholders such as consortiums, universities, associations and institutions.

Indeed, literature on strategizing in business networks suggests that such strategizing also recalls the introduction of changes in networks activated through interfirm relationships in the process of business interaction (Ford and Mouzas, 2008). The results of our research highlight that circular innovation is based not only on a confined change that remains at the firm level or within a dyad but a connected change that relates to change in one relationship that often spreads to others affecting the whole network (Halinen et al., 1999).

The change in pace shifts the focus from product innovation to holistic innovation. The circularity not only considers a circular product model by design (Yang et al., 2019) but also involves the reconfiguration of business relationships in a wider network. As anticipated in previous research, the circular slowing strategy is founded on the design of long-life goods and product-life extension, whereas the narrowing strategy improves resource efficiency by using fewer resources per product (Bocken et al., 2016). Our research contributes to conceptualizing the idea that such a circular approach to innovation can start as product innovation but it requires the analysis of innovation in a circular dynamic network. Our research highlights that, when innovation takes place in a network, particularly a circular innovation, the focal issue is not the new product or technology in itself, but rather how such innovation is developed and implemented by and through the reconfiguration of the business and non business relationships into a circular network.

In addition, nowadays, an effective circular innovation strategy requires considering not only the process of innovation development but also the process of innovation adoption and its diffusion. The circular innovation strategy is based on the involvement of customers and users, generally considered in a market orientation (Hult and Ketchen, 2017). Furthermore, the process of innovation development, as well as innovation adoption and diffusion, are founded on entrepreneurial orientation (Fink et al., 2020), considering the ability of the firms to identify business opportunities and to activate networking.

Based on our research, the circularity can be reached only if each actor of the circular network as a whole shares the circular innovation strategy. The educational learning path facilitated by the mobilizer can support the sharing of circular knowledge together with market and entrepreneurial orientation. The educational learning path can improve actors’ commitment to reaching circular goals, combining their own goals with the goals of the network and improving the actors’ mobilization toward circular innovation.

6.2 Managerial implications

The results of our research investigating how a circular innovation strategy is developed and spread in and by a network context that takes the form of a supply network and a circular network can be useful for companies serving as the initial generator of the innovation as well as those that gradually become involved in the innovative network.

From the single actor’s perspective, the goal to implement a circular innovation demands a wider change in the firm strategy based on the relational perspective and, thus, on the idea of activating, involving and integrating with a variety of key actors, thereby promoting the interconnection of activities and combination of key resources. However, a traditional vertical supply chain approach is limited. The company must change perspective and both approach and relate to market counterparts. Thus, the supply chain becomes a holistic circular network that is also more oriented to the brand owner (customer-user) and its customers.

The process of reconfiguration requires the sharing of values, guidelines and procedures through many interactions within heterogeneous actors. Therefore, it becomes an important process of education for improving the knowledge of different actors related to the potentialities of innovative circular packaging. In conclusion, the management of a circular innovation strategy requires new competences at not only the technical and scientific level but also the marketing and entrepreneurial level.

6.3 Limitations and future research

This research focused on a circular economy recognized as a relevant issue in the global context. This study faces certain limitations, such as the single case study. Future research should delve deeper into other cases. Further research could also further investigate the involvement of other actors, such as the providers of recycling services and public organizations, as well as the KPI related to the circular innovation strategy.

Figures

Figure 1

Theoretical framework

Figure 2

Compostable supply chain

Figure 3

Supply network

Figure 4

Circular network

Figure 5

Empirical framework

Table 1

Interviews

Firm	Role in supply chain	Interviewees responsibilty	No. of interviews
SCF group	Coating firm	Opportunity and technology scouting manager	3
SCF	Coating firm	Marketing manager	2
TIP	Film maker	Marketing and sales manager	1
IMI	Automation systems provider Innovative lab	Marketing manager Scientific researcher	3
SAC	Converter	Marketing manager	1
Brand owner	Brand owner – food industry	Marketing manager	1
Expert of sustainability			3
Expert of circular innovation			2

Source:

Authors’ own work

Table 2

Data structure

First-order concept	Second-order concept	Aggregate dimensions
The coating solution integrates the film materials to provide circular coated films The coated films are used by converters to provide compostable packaging The demand of innovative coating solution depends on the demand of user (brand owner) for compostable packaging	Circular innovation complexity Integration process for complementary materials Solution/demand interdependence	Circular innovation: from firm to supply chain
Specific materials and innovative production processes are required for compostable packaging The compostable packaging can be produced only with specific machinery According to regulation, packaging can be defined as compostable only if it is designed in such a way as to meet defined requirements On the basis of previous relationships, the material provider has been involved into the process of new product development Packaging should be oriented to user	Innovation in upstream perspective. Selection of key providers Innovation in downstream perspective Selection of key business partners The role of user Joint actions to support innovation Complementary resources integration Relationships interdependence	Circular innovation: from supply chain to supply network Dynamic configuration of the supply network
The role of consortium is crucial to depict a circular roadmap and a circular certification Several events organized by industrial associations and sustainable associations have been attended by the focal company Meetings that involved all business partners allowed to better understand the requirements of brand owner	New relationships with competitors and heterogeneous organizations Selection of key business and non business partners The circular innovation strategy relates the launch of compostable solution, its adoption and its diffusion The effectiveness of circular innovation strategy depends on its development and diffusion	From supply network to circular network Relationships with key heterogeneous actors From circular innovation development to circular innovation diffusion
New vertical relationships involve users (brand owners) The changes related to business context are generated by a new consumer’s perspective The features of compostable packaging should be outlined on the basis of customers’ requirements If requirements meet perception the customers are satisfied	Customer centricity Technical accomplishment and commercial accomplishment Identification and management of circular economy opportunities through networking	Sharing of market orientation and entrepreneurial orientation
The potentialities of compostable packaging are not well known by packaging industry The converters are not ready for change	Lack of knowledge related to circular economy Joint educational activities through interconnected business relationships Sharing of circular value and circular goals	Mobilization through the educational path Sharing of circular knowledge Improvement of commitment

Source:

Authors’ own work

Table A1

Stages of circular innovation: circular network dynamics

Time	Key stages of innovation development, adoption and diffusion	Key actors (A)	Key technological resources (TR)	Key organizational resources (OR)	Key joint activities (JA)	Output from actors’ interaction
Internal perspective
2018	Innovation development in packaging component	SCF	Technologies Plants	Eco-friendly packaging competences	–	–
Upstream perspective – vertical relationships
2019 (early)	Innovation development in complementary materials	SCF	New coating technology	Scientific and technical knowledge Patented lacquers Ability to analyze the packaging	Joint research and development, testing Innovative film design	Innovative coated films
		NOV	Innovative material Innovative pilot plants	Technical knowledge Bioeconomy expertise Innovative materials experties
		TIP	Innovative film	Expertise in innovative films Analysis of market evolution Customer services and logistic services
Downstream perspective – vertical relationships
2019 (late)	Innovation development in a packaging configuration	SCF	New coating technology	Patented lacquers Ability to analyze the packaging	Validation of the solution Packaging design and seizing	Innovative packaging configuration
		SAC	Paper compost	Skills in lamination, printing, finishing and adhesives
		IMI	Packaging equipment	Ability to transform theory into practice by piloting materials on commercial vertical and horizontal packaging lines
Wide supply network perspective – vertical relationships
2019 (late) to 2020 (early)	Innovation in compostable packaging adoption	SCF	New coating technology	Scientific and technical knowledge Patented lacquers Ability to analyze the packaging	Ideation and development of circular packaging	Customized compostable packaging
		NOV	Innovative material Innovative pilot plants	Technical knowledge Expertise in innovative materials
		TIP	Innovative film	Expertise in specialty films Analysis of market evolution Customer services and logistic services
		SAC	Paper compost	Skills in lamination, printing, finishing and adhesives
		IMI	Packaging equipment	Ability to transform theory into practice by piloting materials on commercial vertical and horizontal packaging lines
		Brand owner	Food industry reports	Food industry capabilities
Circular network perspective – horizontal and heterogeneous relationships
2020–2021	Innovation in compostable packaging diffusion	SCF	New coating technology	Scientific and technical knowledge	New guidelines for packaging certification	Packaging certification
		European packaging consortium	Industrial report	Technical knowledge
2020–2021	Innovation in compostable packaging diffusion	SCF	New coating technology	Scientific and technical knowledge	New guidelines for packaging certification	Packaging certification guidelines
		European plastic recyclers	Analysis Events	Recycles characterization
2020–2021	Innovation in compostable packaging diffusion	SCF	New coating technology	Scientific and technical knowledge Patented lacquers	Applied research	Packaging testing
		P. University	Laboratory	Science and gastronomic practices
		B. University	Laboratory	Scientific knowledge
2020–2021	Innovation in compostable packaging diffusion	SCF	New coating technology	Scientific and technical knowledge	Cultural events	Packaging promotion
		Trade association	Presentation	Sustainability promotion
		International nonprofit organization	Presentation	Food culture promotion
		National nonprofit organization	Presentation	Biodiversity promotion
		National packaging consortium	Analysis	Packaging knowledge New relationships
		Industrial association	Analysis	Specialized knowledge related to the food industry
2021	Innovation in compostable packaging diffusion	SCF	New coating technology	Scientific and technical knowledge	Certification evaluation	Packaging certification award
		Certfying agency	Evaluation report	Quality procedures
2021	Innovation in compostable packaging diffusion	SCF	New coating technology	Scientific and technical knowledge Patented lacquers Ability to analyze the packaging even before proposing it to the end user	Ideation and development of circular packaging Second product line	Packaging adoption (new users)
		NOV	Innovative material Innovative pilot plants	Technical knowledge Expertise in innovative materials
		TIP	Innovative film	Expertise in specialty films Analysis of market evolution Customer services and logistic services
		SAC	Paper compost	Skills in lamination, printing, finishing and adhesives
		IMI	Packaging equipment	Ability to transform theory into practice by piloting materials on commercial vertical and horizontal packaging lines
		Brand owner	Food industry reports	Food industry capabilities
		Retailers	–	Customers data
		Recycle service providers	Equipment	Waste collection service
		Consumers	–	Habits Preferences

Source: Authors’ own work