Current linear economic model entails coupling of economic growth with resource constraints and degradation of the Earth. In order to combat these negative aspects and to ensure prosperous and sustainable future, a new economic approach is emerging - Circular Economy. Besides neutralizing threats of the linear model, it also promises additional financial, societal and environmental benefits. This is recognized on (inter)national level with numerous action plans and legislation. However there are almost no actions that are aiming at implementing the notion of circular economy on the level of supply chains/ Therefore, inertia is observed in supply chains in relation to changing towards circularity. This thesis looks at the underlying reasons for this with the research methodology designed around the Social Network Analysis approach. Two main reasons for inertia in supply chains stemmed out of research: differences in perceptions of the actors within a supply chain and diffusion of responsibility phenomenon. Going one level deeper, four causes for these developments were uncovered: 1. Lack of incentives for companies in supply chains for making a change towards Circular Economy. 2. High uncertainties and risks that a change to circularity implies for companies in supply chains. 3. Lack of mutual interests between actors in supply chains for making a change towards circularity 4. Clashes of perceptions on all levels in supply chains, as well as between supply chains and government.