A framework for assessment of critical factor for circular economy practice implementation

Abstract

Purpose Consumers, governments and regulatory agencies are concerned about the social and environmental aspect that pushes firms to move towards the circular economy. The transformation of the existing linear model into a circular model depends on several circular economy practices. Therefore, the purpose of this study is to identify and analyse the critical factors that are responsible for the adoption of circular practices. Design/methodology/approach In total, 15 critical factors are identified through the literature review and 12 are finalised with the grey Delphi method. Further, these critical factors are prioritised using the weighted aggregated sum/product assessment (WASPAS) method. A sensitivity analysis is also conducted to test the robustness of the ranking of critical factors obtained from WASPAS. Findings The finding of this study show that “top management participation,” “market for recovered products” and “circular economy oriented R&D activities promotion” are the most significant factors for circular practice adoption. These factors need to address on the highest priority by the stakeholders. Research limitations/implications This study is beneficial for the managers to formulate their strategies for the adoption of circular practices. The prioritisation of critical factors supports the managers and professionals to optimise their effort and resources to adopt the circular practice. Originality/value This study explores and analyses the critical factor for circular economy practice adoption in the supply chain in the context of emerging economies.