Unpacking ecosystem dynamics in the construction industry: The transition toward circular construction ecosystems

The transition towards a circular economy within the construction industry continues to be a formidable challenge. One reason why the construction industry is not at the forefront of circularity is due to the complexity of ecosystem-level organizational forms. In the construction industry, the product-based organizational form characterizes an ecosystem structure with multilateral interdependencies among firms seems to be a more compatible approach towards circularity. Nevertheless, little research has been conducted into how the inter-organizational arrangements and interdependencies of actors within a product-based structure affect the orchestration and alignment between different firms during the implementation of new circular practices in the construction industry. Using an explanatory multi-grounded theory approach, this study investigates how product-based organizational forms affect partner alignment in construction ecosystems compared to project-based organizational forms during the implementation of new practices within the wider transition towards circularity. Based on a multiple-case study involving seven ecosystems, it is suggested that there is a positive connection between a construction ecosystem implementing a product-based approach and the extent of partner alignment being performed by the lead firms as well as a stronger iterative use of orchestration mechanisms to achieve partner alignment. The findings are relevant for both business ecosystems and sustainability scholars.