Enterprise development through networks: a case study of PETRECOZIM and the beverages sector networks in Zimbabwe

Abstract

Inter-organisational networks contribute towards attainment of a Circular Economy (CE). Through effective collaboration, enterprise development can be achieved. In Zimbabwe, plastic waste, mainly PET is a major challenge in the quest for attaining sustainable development of the country. This research focuses on the role of collaboration between bottlers, manufacturers and brand owners in facilitating enterprise development in the context of waste recycling. A case study research design was undertaken of a PET Recycling Company commonly known as PETRECOZIM, which is located on the southern part of Harare, the capital city of Zimbabwe. Interviews were undertaken with key informants and experts in the field of waste management. Document review was carried out on key documentation from the recycling centre in order to assess activities, business models, barriers, challenges, opportunities and core aspects of the operations of PETRECOZIM. The research concludes that organisations can collaborate as private sector players in a particular economic sector such as beverages, manufacturing and brand owners; to form enterprises that can thrive and undertake recycling activities. The research concludes that networks can facilitate enterprise development and self-regulation. It can also be concluded that in certain contexts, networks can operate without external interference and yield significant benefits in circular economy thematic areas such as waste management. The research also concludes that the business model of recycling networks requires blended financing models beyond network partners of one sector, to ensure sustainability. Key barriers identified include lack of participation in the network by organisations which operate in the bottling sector, but are not part of the PETRECOZIM initiative. These firms also lack technical capacity for advanced PET recycling as well as lack of financing to complete recycling stages beyond bales and flakes. The research also concludes that in order to attain circularity and “close the loop”, PETRECOZIM should recycle the waste further into usable products. The Case study also concludes that, without the support of the network members who finance the enterprise PETRECOZIM, its survival is not guaranteed beyond the network. It is recommended that, networks develop models which are sustainable beyond network support, in order to ensure long-term viability.