In most nations, textile waste management is recognized to be a multi-actor system; however most participating actors tend to play a significant role in handling and treating the textile waste single-handedly thus resulting in a very fragmented system fraught with many challenges. In addition, the main textile waste treatment, e.g. in Sweden is still incineration (nearly 55% of per capita disposal) resulting in low degrees of value generation. Nearly 20% of the waste is handled by ten major charities in Sweden. This highlights the necessity for the actors to perform in a network and expand their collaboration, thus move more efficiently towards development of a sustainable value innovation, and find an alternative new way to manage textile waste. Given this our study strives to investigate the challenges and opportunities of implementation of a collaborative business model for sustainable innovation. By taking the benefits of actor-, activity- and value-mapping technique, our study helps in gaining a better realization of the Swedish textile waste management system. The core values of actors have been identified along with the identification of their shared and conflicting values with the aid of a value mapping tool. Data was collected through semi-structured interviews from seven organizations representing the Swedish textile waste man- agement system. Overall our study provides a rich and descriptive picture of the participating actors, their activities, collaboration and value-orientations within the Swedish textile waste management system, and highlights the key drivers of a collaborative solution, viz. legislation, trust and shared understanding and communication, that can be foreseen to increase dialogue and collaboration among actors to support the movement from egocentric to a multi-actor business model. A clear benefit of such collaborative business models is substitution of incineration by higher degrees of reuse of textiles, which has high potential to generate positive environmental impact, through reduction of toxic effects of textile incineration and also new production processes.