2023

Tsytsyna Evgeniya; Lintukangas Katrina; Virolainen Veli Matti

This article examines uncertainties in an emerging business ecosystem in the context of a circular economy (CE). The research was conducted as a single case-study of a business ecosystem in Finland, with thirteen actors that developed CE material for the construction industry. We used transaction cost economics (TCE) as an approach to understand how the ecosystem is created, what uncertainties it faces, and what motivates companies to join it. The results of the study indicate a high level of uncertainty in the emerging phase due to unestablished communication and controversy among partners' targets. Thus, an effective early communication coordinated by a central actor is a key. Moreover, our findings reveal that the business ecosystem as a hybrid mode of contractual relationships in the context of a CE is recognised as a potential for risk mitigation and the creation of a safe environment for innovations and a closed-loop supply chain.