What aspects hinder network alignment for circular economy through advanced services?

Our study investigates how networks may inhibit the implementation of advanced services as a means to transition to a circular economy. Existing literature on the implementation of advanced services clearly reports the beneficial side of networks as a means to overcome resource deficits. Still, from the IMP perspective and by considering the paradoxes of networks, we also know that networks can restrain innovation. Our results show that implementing advanced services is a networked process. We draw our results from a case study about an SME that transitions towards a circular economy by means of an advanced leasing service (i.e., Façade-as-a-Service). This leasing service requires adjustments from various network actors, but these requirements conflict with existing network structures and routines. So, networks are beneficial because they enable access to external resources, but they also restrain circular innovation processes. We observed alignment conflicts on the higher level of company purpose and identity as well as on more strategic and instrumental levels, i.e., business models and processes. These conflicts require managerial attention and active collaboration between network counterparts.