Inter-firm networks and glocalization in realizing a circular economy in the construction sector

Abstract

In recent years, more and more attention has been paid to the wasteful use of raw materials, which leads to major nature and environmental problems. To address these issues, initiatives have been shown by all kinds of stakeholders, in the form of agreements, legislation and action plans, for a transition to a circular economy (CE). This transition is crucial, especially in the construction sector, due to the high level of waste and the use of raw materials. Literature review shows that localization can create local jobs and economic incentives, but also non-economic motives, such as inclusion and engagement. On the other hand, supply chains, business relationships and sales markets have actually been scaled up to a global level in recent decades. Therefore, a shift to a local approach is needed as well as a shift to a supra-national approach to facilitate the CE. Although this may seem paradoxical at first, this process is also known in the literature as 'glocalization'. Much research has been done on CE on multiple scales, however there is insufficient knowledge about the various components addressed by the concept of 'glocalization’, especially on inter-firm networks and how they deal with the paradox of glocalization in realizing a CE in the construction sector. The aim of this research is to shed light on how inter-firm networks, which consist of multiple types of business relationships, deal with shifts that take place in the field of institutional and regulatory arrangements and economic activities both to the supra-national and local scale. The research is done through literature research, which provides qualitative, and a case study on the concrete industry, which also provides qualitative data. The case study was investigated through semi-structured interviews, after which these were analyzed using coding tools. On this basis, the paradoxes of glocalization have been formulated and it has been analyzed how the companies and organizations within the inter-firm networks deal with these paradoxes. Although the research shows several limitations with regard to the data and synthesis, it can be concluded that the inter-firm networks exhibit different attitudes, which can be categorized as proactive, reactive and inert, towards the paradoxes of glocalization. Furthermore, the research shows that different attitudes to the paradoxes of glocalization can drive changes in the inter-firm networks, such as business expansions, new partnerships between companies that have similar activities, and new partnerships between companies that have different activities but are working on one resulting product.