COLLABORATIVE ENDEAVOR AND CIRCULAR BUSINESS MODELINNOVATIONS - ENABLERS OF COMPETITIVE ADVANTAGES ANDSUSTAINABILITY IN TYRE RECYCLING

The aim of this paper is to analyse the multidimensionality of collaborative circular business modelsand their role in enabling business model innovations in tyre recycling industry. In the last decade,the global socioeconomic processes have facilitated discussions about sustainable developmentand the circular economy. The Corona19 pandemic crises have highlighted the importance ofdepleting resources and closed resource loops advocated by the circular economy. Tyre recycling isan important aspect of the circular economy that has got a lot of attention within the EuropeanGreen Deal strategy requiring for immediate actions towards sustainability. The proper tyrerecycling is the essential environmental challenge on the macro level, and, also, the unusedpotential of new business opportunities on the micro-business level. At present less than half of theEuropean countries are advanced and ensure 100% recycling of end-of-life tyres, while other,especially, Eastern European countries seriously lag behind. On the business level, some tyrerecycling companies have pioneered with circular business model innovations and newtechnologies in order to produce innovative products with higher value and quality thus reachingextraordinary competitive advantages. The research discovers problematic issues related to thelack of collaborative endeavor being as an important element in embedding the circular businessmodel innovations in tyre recycling companies in order to reach the competitive advantages. Theresearch results reveal existing unused business opportunities related to the tyre upcycling circularbusiness models, when producing products with a higher value and quality. The paper points at thecrucial role of circular business model innovations in order to shift to the production of highervalue-added products in the result of tyre recycling. This study identifies a future research agendaregarding tools that promote balanced environmental and economic benefits in the tyre recyclingindustr