A Hybrid Multi-Criteria Decision Analysis to Explore Barriers to the Circular Economy Implementation in the Food Supply Chain

Abstract

This research aims to identify, categorize, and prioritize the barriers hindering the implementation of the circular economy (CE) within food supply chains. To do so, a hybrid multi-criteria decision analysis method, combining a decision-making trial and evaluation laboratory (DEMATEL) and the analytical network process (ANP), is used to analyze multiple determinants extracted from the target literature and the expert panel opinions. As a result, the key barriers to implementing the CE in the food sector were identified and ranked through the hybrid multi-criteria decision analysis. The practicality and validity of the model in the case of causal relationships that have hindered the CE transition in the food sector in Iran, as a developing country, are examined. A total of 15 barriers in six dimensions were analyzed. The “technical and technological capabilities”, “financial issues”, and “production issues” were distinguished as the most important dimensions. Moreover, “lack of circular design and innovative packaging to reduce food waste”, “high cost of CE implementation”, and “insufficient use of reusable, recyclable, and recoverable materials” were identified as the key barriers in the CE transition in food supply chains. The findings of this study revealed that “government policies”, “culture”, and “financial issues” were the most significant “cause” dimensions, which could leverage the elimination of “effect” dimensions, including “technical and technological capabilities”, “management and collaboration issues”, and “production issues”. The identified challenges and barriers pave the way for CE implementation and outline focal points for decision makers to mobilize their efforts in this regard. The findings can effectively contribute to the domain by providing insightful guidelines for the government and associated authorities, policymakers, and all stakeholders within the food supply chain to support the CE transition in the food sector.