Abstract

The paper explores the adoption and operationalization of the circular economy strategy within the ambit of cooperatives, anchoring this exploration in the embeddedness theory. In more detail, our study aims to discern whether territorial and network embeddedness act as catalysts for the adoption of a circular economy strategy and subsequently influence the operationalization of circular initiatives. Given that cooperatives intrinsically emphasize community bonds and mutualistic relationships, understanding the nuances of their embeddedness can elucidate the pathways in adopting and operationalizing circular economy strategies. The study draws from a survey encompassing 1116 Italian cooperatives to fathom how these organizations integrate and operationalize the circular economy in their routine operations. Data were scrutinized using a structural equation model. Outcomes reveal that both territorial and network embeddedness emerge as strong influencers of circular economy strategies, which subsequently sway the operationalization of circular initiatives. Our investigation, assessing also the mediating role of circular economy strategy adoption in relation to both territorial and network embeddedness on the assimilation of circular endeavors, offers enriched theoretical and managerial perspectives on the embeddedness theory and its practical implications.