The implementation of the circular economy (CE) implies disruptive changes to traditional supply chain management, due to the creation of reverse flow of value, materials and information. Through a longitudinal and embedded case study methodology, this research investigates the deployment of two circular economy initiatives pursued by a manufacturing firm at the supply chain level. In particular, resource dependence theory is adopted to investigate the evolving power and dependence dynamics occurring in buyer-supplier relationships. We begin with an in-depth analysis of the two subunits of case: the buyer-supplier relationships in the material flow of steel and plastics. Data collection is performed through semi-structured interviews conducted with both the buyer and the suppliers of steel and plastics. We develop a set of propositions highlighting how CE implementation strengthens actors’ interdependence and emphasises a shared interest in a cooperative, long-term partnership marked by trust and mutual benefits. Moreover, a power imbalance shifts in favour of suppliers, but the strong mutual dependence deters opportunistic behaviour in favour of long-term relationship commitment. These findings challenge the traditional view suggesting that dependencies have to be reduced at all costs, thus calling for the adaptation and extension of traditional operations and supply chain management tools and theories to effectively address the complexities of the CE transition.
