Collaboration between firms is important to stimulate the transition to a more sustainable society. This special volume shows that collaboration is indeed one of the preferred forms of governance to manage relations between firms in a sustainability context. Collaboration enhances sustainable benefits by creating legitimacy of sustainable technologies, reducing waste and improving environmental and social performance of firms. The institutional environment, in particular environmental laws and regulations, has a beneficial impact on collaboration and relationship management in sustainable supply chains. Two studies in this special volume show, however, that stringent environmental regulations may hinder economic performance and result in outsourcing to foreign suppliers with potential detrimental effects for environmental performance. These negative effects can be overcome by firms that invest in sustainable innovation. This special volume also shows that eco-innovation leads to sustainable benefits, such as lower greenhouse gas emissions.