Abstract
This paper studies drivers, barriers and enabling conditions for environmental upgrading (EnvU) by manufacturing suppliers who use recycled materials (plastics), and analyses whether and how this type of EnvU changes existing global value chains (GVCs). To improve our understanding of drivers of and barriers and enabling conditions for this form of EnvU, we apply the concepts of task environment and institutional environment, and address changes in the existing GVCs through the concepts of functional and structural linkages. Despite existing barriers, suppliers work to ensure the uptake of recycled plastics, and apply strategies and take actions that change their task and institutional environments. Product EnvU through the use of recycled plastics also requires recycling (end-of-life EnvU) to be in place, and therefore leads to changes in functional and structural linkages in the existing GVCs. These changes are necessary to achieve closed material loops in the broader context of a transition to a circular economy.