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Circular economy adoption in MSMEs: unveiling enablers and barriers

Sarmistha Mishra (School of Humanities, Social Sciences and Management, Indian Institute of Technology Bhubaneswar, Bhubaneswar, India)
Dukhabandhu Sahoo (School of Humanities, Social Sciences and Management, Indian Institute of Technology Bhubaneswar, Bhubaneswar, India)
Souryabrata Mohapatra (National Council of Applied Economic Research, New Delhi, India and Department of Economics, The University of Auckland, Auckland, New Zealand)

International Journal of Development Issues

ISSN: 1446-8956

Article publication date: 6 November 2024

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Abstract

Purpose

The study aims to explore the enablers and barriers to the adoption of circular economy (CE) practices in micro, small and medium enterprises (MSMEs) and examine how these factors differ between developed and developing countries.

Design/methodology/approach

The research uses a systematic literature review (SLR) methodology to identify key enablers and barriers to CE adoption in MSMEs. The SLR process involved a detailed search and analysis of relevant academic articles from the Scopus and Web of Science databases, following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines to ensure transparency.

Findings

The study identifies 19 enablers and 16 barriers to CE adoption in MSMEs. Technological upgrades are the key factor helping MSMEs successfully implement CE practices, while financial constraints are the main challenge they face, according to studies from both developed and developing countries.

Originality/value

This research contributes to the existing body of literature by not only identifying the primary factors that either support or impede the implementation of CE by MSMEs but also by classifying them according to developed and developing countries to provide policymakers and MSME stakeholders with valuable insights on enhancing the implementation of CE in both countries by taking into account the particular barriers and enablers faced by each group individually.

Keywords

Acknowledgements

This paper was presented at the 5th Symposium on Circular Economy and Sustainability, held at the Mediterranean Agronomic Institute of Chania in Greece from 17 to 19 June 2024, and can be viewed in Session 11B at https://easychair.org/smart-program/5thCESUST2024/. The authors are grateful for the feedback received from the conference participants. The authors deeply appreciate the constructive comments provided by chief editor Dr. Dilip Dutta and the anonymous reviewers of the journal, which significantly improved the quality of this paper. The views, information or opinions expressed in it are those of the authors, and the usual disclaimer applies.

Citation

Mishra, S., Sahoo, D. and Mohapatra, S. (2024), "Circular economy adoption in MSMEs: unveiling enablers and barriers", International Journal of Development Issues, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJDI-06-2024-0163

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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