This study explores the dynamics of network efficiency within business-to-business (B2B) relations in the Swedish recycling industry, by employing the concept of embeddedness and the interaction model. The complex network of connections between businesses play a crucial role in shaping their strategic decisions and sustainability outcomes, which are critical in today’s environmentally-conscious market.

The aim of this study is then to investigate strategic decision-making within Sweden’s recycling sector, centering on the effect of network relations on firms’ strategies toward network efficiency. The research delves into the dual perspective of embeddedness - undersocialised and oversocialised views - to analyse how companies manage the equilibrium between economic objectives with the need for cooperative, value-driven interactions.

Through conducting a qualitative study, using semi-structured interviews and secondary data, the research explores a case of a Swedish recycling firm with an extensive network. A framework was developed as a result of the findings, connecting the intricacies of embeddedness and interactions within B2B relations, and its impact on network efficiency and strategic decision-making.

This study concludes that network efficiency among Swedish recycling firms in B2B relations is heavily influenced by embeddedness in their interactions. Thus, the findings emphasise the need for strategic actions that enhance relationship quality and fostering of mutual benefits. It highlights the importance of transparency, trust, and adaptability, recommending a balanced approach that incorporates both economic objectives and socio-environmental concerns. Firms can use this study’s findings as a guide for building and nurturing strong B2B network relations, and adapt it to their strategic actions regardless of the industry. Lastly, further research is encouraged to be conducted, using these factors, across diverse settings, suggesting their broader applicability beyond the recycling industry.