To cooperate, or not to cooperate, that is the question. Strategic analysis for the implementation of industrial symbiosis

Abstract

The lack of adequate support in strategic decision-making hampers the widespread of industrial symbiosis (IS). Although various business models for IS are available, existing literature focuses solely on cooperation between waste producers and waste users to replace primary inputs with waste. This paper proposes a strategic analysis for waste producers introducing IS, comparing the traditional cooperative approach with a competitive new product development strategy. Using a game-theoretical model, a third hybrid strategy is defined. The paper examines the impact of market characteristics, investment requirements, IS costs, and primary input purchase costs on the strategic choices of waste producers, providing insights for managers and decision-makers. Results suggest that the characteristics of the market where to enter significantly affect the final strategic behavior. Specifically, the main strategic discriminating factors are the market size, the consumers’ willingness to pay, and the investment extent.