THE RELATIONSHIP BETWEEN INTERNATIONALIZATION AND CIRCULAR ECONOMY PRACTICES: A STUDY OF THEIR INTERACTION

Leonardo Mori
Javier Carrillo-Hermosilla
Christoph Kiefer

ABSTRACT

This thesis investigates the role of internationalization in fostering circular economy (CE) practices within companies, employing a qualitative research design through desk research. By analyzing publicly available information from three international corporations, the study explores how international market dynamics influence the adoption of CE practices. The research framework integrates the Natural-Resource-Based View (NRBV) to assess internal resources, competences, and dynamic capabilities, and Institutional Theory to understand external pressures shaping CE adoption. The comparative analysis identifies key drivers, barriers, best practices, similarities, differences, and common challenges companies face when embedding CE principles into their operations. Findings suggest that internationalization acts as both a catalyst and a challenge for CE implementation. It pushes companies to innovate internally while responding to varied external pressures across markets. International exposure can encourage CE adoption by introducing firms to diverse regulatory and market requirements. However, it also presents obstacles such as regulatory complexity, supply chain difficulties, and the need to balance global strategies with local adaptations. This study offers insights into the strategic alignment between sustainability and international business, providing valuable lessons for companies seeking to strengthen their sustainable practices globally. It also underscores the importance of managing the tensions and complexities that internationalization introduces in the context of CE.

Key words: Circular Economy, Internationalization, Sustainability, Natural-Resource-Based View (NRBV), Institutional Theory, Multinational Corporations