Interrelationship among CE Adoption Obstacles of Supply Chain in the Textile Sector: Based on the DEMATEL-ISM Approach

Abstract

Globally, in the innovative and distributional circular textiles, the textile sector of Taiwan has a prominent place. Within the textile industry, the circular economy (CE) obstacles adopted have been studied by several scholars. However, the interrelationships among these obstacles are easily ignored. The present study aimed to identify CE adoption obstacles from the supply chain (SC) perspective in Taiwan’s textile sector by analyzing the interrelationships among the CE adoption obstacles and establishing a hierarchical network and the causal inter relationships of the identified obstacles. Furthermore, the CE adoption obstacles and interrelationships were analyzed using interpretative structural modeling and the decision-making trial and evaluation laboratory (ISM-DEMATEL). The common results of the two methods demonstrated that two obstacles, consumers not having sufficient knowledge and awareness of reuse/recycling (B1) and a lack of successful business models and frameworks for CE implementation (B3), were the significant obstacles influencing adopting CE in the textile supply chain, while the obstacle making the most efficient way (B12) of the right decision to implement CE was minor. Thus, the government should formulate friendly laws and regulations that encourage CE adoption, while textile firms should monitor and control recycling and efficiency approaches handling the CE adoption problems. Our results could offer first-hand knowledge to textile firms or managers to effetely achieve CE implementation objectives.