Determinants of Remanufacturing Adoption for Circular Economy: A Causal Relationship Evaluation Framework

Abstract

Organizations are transforming their linear models into circular models in order to become more sustainable. Remanufacturing is an essential element of the circular model; thus, there is an urgent need to adopt remanufacturing. It can offer organizations economic and environmental advantages and facilitate the transition to a circular economy (CE). Several aspects are crucial to the use of remanufacturing methods in order to transition to the CE. Therefore, in this study, we aimed to develop a framework for investigating the causal relationship among determinants of adopting remanufacturing processes for the circular economy. Through an integrated approach comprising a literature review and the Modified Delphi Method, we identified ten remanufacturing adoption determinants. The causal relationship among these determinants was established using the DEMATEL method. Furthermore, we classified these determinants into cause and effect groups. Five determinants, “consumer preferences”, “remanufacturing adoption framework”, “market opportunities”, “management commitment”, and “preferential tax policies”, belong to the cause group, and the remaining five belong to the effect group based on the effect score. To implement remanufacturing processes and transition to a circular economy, it is necessary to pay greater attention to these identified determinants, especially those that belong to the cause group. The outcomes of this study may aid management and policy makers in formulating strategies for effectively implementing remanufacturing methods within their organizations.