Assessing people-driven factors for circular economy practices in SME

supply chains: business strategies and environmental perspectives

Fredrick Betuel Sawe, Anil Kumar, Jose Arturo Garza-Reyes, Rohit Agrawal

Abstract: Globalisation and technological advancements have increased the pressure on small
businesses to increase their productivity and to gain competitive advantages. That pressure
has been placed on the resources available, resulting in increased environmental degradation
as a result of the traditional linear model of make-use-dispose. Circular economy (CE)
practices offer the opportunity for sustainable production based on the reuse-remanufacture
and recycling of resources for small and medium-sized enterprises (SMEs) to increase their
sustainability, resulting in enhanced performance levels in terms of business strategies and
environmental perspectives. But in academic literature, the role of people-driven factors
(PDFs) in the adoption of CE practices in the supply chains (SCs) of SMEs is limited.
Therefore, to fill this literature gap, this research looks at analysing PDFs for the
implementation of CE in the SMEs in developing countries in two phases. PDFs are
identified from an extensive literature review; a DEMATEL technique is then employed to
understand the significant influence of each factor in the adoption of CE practices in SCs by
dividing them into cause-effect groups. The findings show that PDFs such as training and
knowledge sharing, employee participation, leadership and management plus strategic
alignment are considered to be the most important significant factors in the adoption. The
findings of this study will help industrial managers to understand the significance of the role
of PDFs for enhancing business strategies; these findings can reduce the negative
environmental impact in the adoption of CE practices in the SCs of SMEs.
Keywords: Enhancing strategies; people-driven factors; circular economy practices;
DEMATEL.

1. Introduction

Organisations over the last two decades have seen an increase in production and
consumption; this has mainly been attributed to the growth and development of globalisation
and technological advances as more options and choices become available for customers
(Jaffry et al., 2004; Maurizio et al., 2020). In this environment, organisations are under
constant pressure to quickly respond to the dynamic market conditions to gain high market
share and maintain a greater competitive advantage in their respective SCs (Garza-Reyes,
2010). Globalisation has not only created pressure for both small and medium-sized

1
enterprises (SMEs) to enhance their business performance, but has also driven organisations
to profoundly consider their environmental performance as well (Bai et al., 2015; Dey et al.,
2020). A report by the World Economic Forum (2015) has shown that the total population
worldwide has exponentially grown over the last few centuries; a recent increase is from 3.3
billion in 1965 to 7.2 billion by 2015 (Fraser, 2017). This presents businesses with both new
opportunities and challenges as technological advances have transformed several products
and market sectors and how their supply chains (SCs) operate (Geissdoerfer et al., 2017).
As previously mentioned, 21st-century organisations are continuously seeking to improve
their financial performance to add value in their SCs (Kalyar et al., 2019). This situation
suggests that if organisations can effectively leverage the benefits of sustainability, this can
be a factor that will enhance the performance of the core SC functions i.e., planning,
sourcing, procuring, distribution etc. Genovese et al. (2017) suggested that this is achieved
through effective integration of environmental initiatives such as CE with the overall supply
chain management (SCM) strategy, resulting in an overall improvement in organisational
supply chain performance. Therefore, it can be argued that if organisations are to survive,
their focus should move away from individual competition to making efforts to adopt leading
technologies and practices, supplier evaluation, quality improvements and long term
continuous improvement.
Much of the research that has been done mainly examines the hard dimensions of
implementing CE and very few of the people driven factors. In support of this, Muduli et al.
(2013) point out that human-related factors have mostly been left out of supply chain
analysis, while major steps have been taken in technological impacts. This suggests that
failure to address effective integration of critical human success factors can have a major
negative impact that can hinder the successful implementation of CE practices in
organisations.
Thus, this research is mainly focused on developing a framework for evaluating people-
driven factors related to the implementation of CE. The following are the set objectives:

 To identify the key people driver factors towards enhancing CE practices in the
supply chains (SCs) of SMEs.

 To identify the inter-relationships among the human resource-related factors towards

enhancing CE practices in the SCs of SMEs.

2
  To provide suggestions and recommendations for adoption of CE practices in the SCs
of SMEs.

An extensive review of relevant literature as well as expert opinions and inputs have been
used as key PDFs for the adoption and implementation of circular supply chains (CSC). This
study has deployed a DEMATEL technique in prioritising as well as evaluating the inter-
relationships among CE practices (Sivakumar et al., 2018). The focus of this study is to
develop a framework for analysing and assessing the CE implications based on the SMEs of
developing countries. The adoption and implementation of CE practices in SMEs can be
important in enhancing process improvement and hence boosting productivity and
profitability.

This paper has six sections. Section 1 starts with the introduction of the study and its
motivation. A literature review is presented in section 2. Section 3 starts with identification of
people driven factors in the adoption of CE practices in supply chains. Section 4 includes
analysis of factors. Discussion and implications are presented in section 5. Finally,
conclusions and future research directions are presented in section 6.

2. Literature review

Over the years, several studies (Dubey et al., 2017; Sivakumar et al., 2018) have been
conducted on CE and CSC as a business model that can make major contributions to
enhancing organisational quality and performance improvements. For instance, in the current
dynamic business environment, organisational performance levels are not only based on
financial performance but rather on how effective they are in integrating and implementing
sustainable practices to enhance environmental performance (Govindan et al., 2015).
Therefore, it can be argued that the main goal for implementing CE is to ensure that
organisations can both effectively and efficiently achieve high levels of financial
performance while incorporating waste reduction strategies that would allow efficient flow of
goods with minimal environmental pollution in their SCs (Ghisellin et al., 2016).
In an effort to reduce the environmental impacts brought on by the manufacturing sector, an
interest in the implications of CE and CSC on SCM has caught the attention of both scholars
and practitioners in identifying areas of improvement and reduction of waste in the SC
process (Webster, 2015; Sivakumar et al., 2018) and its relevance in SC innovation in the
move towards CE. Al-Ghwayeen and Abdallah (2018) point out that effective eco-friendly

3
strategies and policies should be employed by organisations that enable preventive actions on
reducing environmental distraction along supply SCs such as lean and green practices which
aim to reduce and remove waste in the SC network. By enforcing these practices,
organisations will be able to transform those SCM activities that are essential for enhancing
value creation by reusing, remanufacturing and recycling. Given the ongoing increase in
awareness of environmental issues, organisational supply chains are becoming more
compelled to reconsider and reinforce sustainable initiatives and transactions between
themselves and customers (Al-Ghwayeen and Abdallah, 2018; Entezaminia et al., 2017). The
result of this situation suggests that a large number of organisations have started to move
from the traditional/linear/open-loop model of manufacturing to a modern circular framework
to enhance SC sustainability in a move towards CE.
To appreciate the concept of CE and its impacts, it is vital to analyse the various definitions
that have been used in the literature currently available. Merli et al. (2018) have highlighted
how natural resources influence the economy, as they provide production and consumption as
inputs as well as waste in terms of outputs. Moreover, during the ’70s the definition of CE
was further expanded with more features focused on factors such as industrial economics
(Stahel and Reday, 1976). They conceptualised CE as a loop economy to redefine industry
strategies for better waste prevention and resource efficiency (Geissdoerfer et al., 2017). The
emphasis was on the idea of effective resource utilisation as a business model that can allow
organisations to make a profit without the costs and risk associated with the waste (Stahel,
1982). However, one of the most renowned definitions of the concept has been framed by the
Ellen MacArthur Foundation, who point out that CE is an ‘industrial economy model that is
restorative and regenerative by intention and design’ (EMF, 2012). In support of this, Yuan et
al. (2006) add that the CE model acts as a restorative factor that encourages organisations to
keep their materials, products and components at their highest value at all stages in the
manufacturing cycle.
In the last three decades, technology has been incremental in not only improving operational
performance but has also been vital for increasing sustainability as a major driver for
implementing CSCs (Tukker, 2015). In addition, new technology, according to Müller et al.
(2018), has increased the traceability of products in SCs which in turn helps manufacturing
organisations to optimise both the product and production. By doing so, this allows these
organisations to be able to identify areas for improvement and to deliver more efficient and
effective use of resources; this enables a CSC strategy (Erol, 2016). Despite this, it can be
argued that although technology plays a major role in identifying performance improvements

4
in many areas, little attention has been paid to analysing the human factors and behaviours
involved (Glock et al., 2017). This study asserts that humans are part of every manufacturing
system and are involved in all stages such as assembly, transportation, installation, use and
the overall lifecycle of the system. Erol (2016) maintains that organisational competitive
advantage is based on how well managers can effectively manage and integrate human
resource factors with advanced systems and practices in implementing and adopting CE. CE
concepts and practices help manufacturing organisations in developing countries by reducing
their operational costs, promoting better working conditions and flow of information, value
creation and higher quality in delivery. To assist organisations in implementing CSC
practices, Dubey et al. (2017) developed a framework of integrating both hard dimensions
(technologies, strategies and policies) with soft dimensions (people driven factors). Factors
such as employee engagement, training and management support are vital elements to
consider rather than only focusing on the hard dimension elements in implementation of CE
(Sweeny, 2013). Despite these general observations (Muduli et al., 2013; Glock et al., 2017),
the consensus of opinion among researchers is that human factors have been largely
neglected in manufacturing and engineering literature.
Based on these different perspectives, CE can be defined as a regenerative process in which
input resources, waste and emissions are reduced in the production process by closing or
narrowing the loops (Geissdoerfer et al., 2017). This is achieved by a continuous process of
redesigning, remanufacturing, reusing and finally recycling (EMF, 2012). Zhan et al. (2018)
agree that CE is not just about the protection of the environment, but is also a factor that
promotes a shift of the value chain by reducing unnecessary waste through moving from a
linear to a circular model. If used effectively, this can boost overall supply chain performance
and value creation by reducing waste, operational costs, reducing lead time and therefore,
enhancing productivity and profitability

2.1 Benefits of a Circular Economy as a Business Model

Business models are a series of strategic decisions and structures within an organisation that
represent a set of values, activities and patterns of work with the sole purpose of enabling an
organisation to achieve its aims and objectives (Zott et al., 2011). Several authors have
highlighted the importance of viewing business models as commercial strategies and
structures that support the overall goals and direction of an organisation for development
(Mont, 2002; Manzini and Vezzoli, 2003). They agree that most organisations view these
models as opportunities to exploit or launch new value-adding opportunities for more durable

5
and safer products as well as eliminating waste in the process. As such, CE can be argued as a
business model that is responsible for enhancing value creation by enabling circularity in all
SC activities of an organisation.
As previously mentioned, SCs are one of the key business elements that, when managed
effectively, can be a major driver for change towards implementing a more sustainable
business model (EMF, 2012). By effectively identifying and integrating CE as a strategic
business model, this can be a major influencing factor for organisational development
(Agrawal et al., 2020). For instance, a practitioner literature review conducted by EMF
suggests that transition to a CE could reduce the consumption of primary materials in the
food, construction and manufacturing sectors from 32% by 2030 to 53% by 2050 in the
European Union (EU). They suggest that implementation of CE would involve a set of
practical value creation mechanisms that have positive effects on enhancing productivity and
therefore boosting competitiveness. This would result in reducing costs of imported raw
materials and components that account for 40-60% of the total spend in the EU, hence
generating cost savings of about €600m. With regard to both business and economic
opportunities, researchers (Gregson et al., 2015; Murray et al., 2017) agree that CE can build
overall prosperity without the depletion of natural resources. This viewpoint suggests that a
CE model in macro-economic terms has the potential to provide organisations with a win-win
situation (Jabbour et al., 2019).

2.2 Implications of Circular Supply Chains

SCs and SCM concepts gained huge attention during the late 70’s and 80’s. The rise of
globalisation, the growth of technology and the invention of containerisation in the 60’s (El
Kalla, 2017) focused researchers on these concepts. As business and population grew so did
the need to find strategic solutions on how to reduce the complexities of business to business,
business to customer and customer to customer networks. The traditional SCM concept was
largely associated with the operations management of an organisation, based on the
performance control and flow of information among collaborating organisations
(upstream/suppliers) to the ultimate satisfaction of the end-users (downstream/customers)
(Hines et al., 2000; Defee and Stank, 2005 and Hult et al., 2007). However, the central theme
of contemporary literature during that time points out that SCs and SCM aim to deliver
effective and efficient management of both upstream and downstream activities to enable
delivery of superior value-adding solutions at least cost. These remarks suggest that the main
objectives of SCs were to be able to reduce cost and throughput time, therefore underpinning

6
the traditional view of SC (Korhonen et al., 2018). On the other hand, one of the most
important developments in current literature on SC strategy has been the connection between
sustainability and lean practices where organisations emphasise ‘doing more with less’ while
also reducing the overuse of resources (Mollenkopf et al., 2010). Despite this, it can be
argued that the association between SCM and sustainability owes its interest to the closed-
loop model of remanufacturing and product recovery literature. Based on the above analysis,
it can therefore be argued that the CE closed loop has vital implications towards the
development of SCs and logistics. For example, with the implementation of reverse logistics
(RL) in organisations, SC plays a major role in reinforcing CE principles; these are both
essential and relevant in product return, recovery and recycling, resulting in enhancing value
creation and minimising waste. According to research conducted by Ripanti et al. (2015) on
CE and RL applications in product remanufacturing, these two concepts have close
relationships and play a vital role in enhancing process improvement and performance in the
manufacturing sector. As such, when organisational SCs shift from a linear system to a CE
with RL, Frei et al. (2015) point out that this process creates an effective downstream value
recovery process of planning, controlling and managing the flows of materials and
components. Organisational activities of RL can be a factor that facilitates reduction of cost
and value retrieval by enabling better quality improvements, damage control etc. which can
result in boosting competitive advantage (Ripanti et al., 2015).
2.3 Implementation issues of Circular Economy

As previously mentioned, the strategic decision of employing the CSC model approach in
organisations can have several positive implications that distinguish the traditional linear SC
from a more CSC based system. These implications, as seen in the above analysis, do not
only enhance organisational performance and competition but also prevent environmental
damage; this can result in maximising competitive advantage (Stahel, 2013). Despite this,
scholars such as Guide et al. (2003) and Korhonen et al. (2018) suggest that introducing CE
or RL supply chain activities into a business can become a complex process. They state that
recycling products is rarely seen as a value-adding system, pointing out that the process of
product disassembly and remanufacturing can be difficult as conditions that are used on
different products do not only vary but, as components are spread around the globe, they can
be difficult to retrieve. As a result, despite the fact that closed-loop SC and RL can have
major positive implications, on the other hand they can present challenges both at design and
operational levels. Researchers have noted that although RL activities have been

7
implemented in sectors such as the auto industry since the 1920s, contemporary businesses
still treat closed-loop systems as silos rather than an integrated process; this has resulted in
slow adoption and implementation. Also, current literature has highlighted an over-
dependence on technological activities at the neglect of human factors for enabling change
from traditional approaches. This has also been a factor that has limited implementation
(Muduli et al., 2013; Govindan and Hasanagic, 2018).

3. Proposed People Driven Factors

Previous studies have shown that there is a clear link between people factors and the
implementation of environmental management systems (EMS) (Massoud et al., 2011).
Furthermore, the human resource (HR) department of organisations and its relevance in the
adoption and implementation of innovation, quality management and lean manufacturing has
been a major focus in contemporary literature. Over the years both the PDF and CE business
models have gained a lot of attention from scholars. However, the research exploring inter-
relationships between the two concepts has remained scarce with limited sources. Moreover,
Jabbour et al. (2019) point out that while the understanding and awareness of the principles of
CE have been widely taken into consideration, there is still a relatively limited amount of
attention given to the concept despite its potential in significantly enhancing organisational
competitiveness. While research on the technical aspects (hard dimensions) of CE have been
widely explored (Dubey et al., 2017), the people-driven factors (PDFs) still require further
development. The disregard of the PDFs of CE has contributed to the fact that the
implementation and adoption of CE practices in organisations remains a challenge.
Previous research studies have observed the roles that people play, in not only enabling and
enhancing organisational goals and objectives, but also in implementing practices to boost
performance (Jiang et al., 2012; Yusliza et al., 2019). Research work by Nejati et al. (2017)
shows that the human contribution in implementing sustainable SCM goes far beyond
organisational boundaries and should be managed effectively to ensure optimum successful
implementation. Human resources (HR) and HRM practices have become a central theme in
organisational development, with theories such as stakeholder management suggesting that
the most relevant factor of interest is the organisation's employees (Murray et al., 2017). As
such, it can be argued that HR can play a vital role in engaging and supporting the overall
goals of organisations in introducing new ways of enhancing supply chain sustainability such
as CE. Based on the above analysis, it can be seen that people factors play a vital role in
enabling the implementation and achievement of performance enhancement practices

8
(Govidan et al., 2015). Therefore, a comprehensive literature review was conducted in this
study to identify these people factors; they are described below.

3.1 Strategic Management and Leadership Practices (PDF1)

This is one of the most critical key factors in organisations that not only facilitates the
decision-making process but also initiates the vision for implementation and adoption of
essential strategic planning and operations of the firm. This can affect both its internal and
external environment. Also, the lack of effective decision making from both top and middle-
tier managers can result in a lack of drive and motivation to implement CE as a business
model; a failure to raise awareness of the relevance of CE results in delay and hindrance to
making a successful implementation. The managerial and leadership perception of
sustainability is a critical factor that facilitates frameworks and policies in enhancing circular
practices (Bansal and Roth, 2000; Jenkins, 2006; Giunipero et al., 2012).

3.2 Inclusive Communication (PDF2)

Effective communication involves inclusive top-down and bottom-up communication within

an organisation. Good communication within an organisational setting aims to effectively
integrate external and internal stakeholders such as employees, suppliers, customers and other
SC agents to be able to achieve overall goals and objectives. One of the major
implementation strategies for CE is the role played by effective communication in the
adoption of CE practices. This includes the overall strategies, tools and support mechanisms
that are put in place to enhance better knowledge, skills and information sharing among
different business functions within an organisation (Ngai et al., 2008; Govidan and
Hasanagic, 2018).

3.3 Strategic Employee Participation and Recruitment (PDF3)

Value creation and maintenance are some of the key core factors that drive the objectives and
goals of an organisation to remain competitive. It should also be recognised that the ability of
an organisation to recruit and retain quality employees can be a major factor that boosts and
maintains value creation, resulting in the production of quality merchandise and services,
hence boosting competitive advantage (Massoud et al., 2011; Muduli et al., 2013).

3.4 Performance Appraisal (PDF4)

Performance appraisal and effective reward systems are key factors to consider in the
evaluation and implementation of sustainable practices in an organisation. Compensation
management structures in an organisation play an important role in linking employee motives

9
to the overall organisational goals and objectives. It can therefore be argued that performance
appraisals and reward systems should be an important part of the strategic approach of
aligning HR and organisational policies.

3.5 Organisational Culture (PDF5)

Organisational culture can be defined as a set of rules, principles and traditions that have
developed over a certain period within an organisation and has been transmitted across
generations of employees (Ngai et al., 2008). Green organisational culture initiatives rely on
the desire and motivation of the organisation to become involved in environmentally friendly
practices. Similarly, organisational culture plays a critical role in attracting and retaining
motivated and competent employees.

3.6 Organizational Change Management (PDF6)

Jabbour et al. (2019b) state that change is an ever-present and occurring factor in an
organisational life cycle. Organisational readiness for change can be a major determinant
towards successful change management and adoption of environmentally friendly practices
that can have an impact on how work processes are achieved. Muduli et al. (2013) support the
fact that for organisations to successfully implement CE practices, change readiness should
be a core competence.

3.7 Training and Knowledge Sharing (PDF7)

Training can be referred to as a systematic process that equips employees with the necessary
skill sets to accomplish the goals and objectives that have been laid down by an organisation
(Muduli et al., 2013). CE, being a cultural transformative business model, requires adequate
and relevant training to be provided to employees; insufficient training can result in
employees being unable and unwilling to participate in the change process (Govidan and
Hasanagic, 2018).

3.8 Strategic Planning and alignment (PDF8)

Strategic planning and alignment are imperative as they provide a framework that enables an
organisation to provide a proactive decision-making process that evaluates the performance
of the set goals and objectives towards implementing CE activities by assessing the risks and
strategies to mitigate these risks (Muduli et al., 2013; Massoud et al., 2011). Selection of
specific CE practices can assist in effective planning towards implementing sustainable
environmental decisions that can enable an effective strategic alignment (Kahn et al., 2012).

10
 3.9 Mutual Trust (PDF9)

As previously mentioned, organisations are under constant pressure due to the unpredictable
and dynamic market environment which has resulted from globalisation and technological
developments. This has generated the development of new ideas and systems that need
mutual trust and understanding between different stakeholders within an organisation’s SC to
cope with internal and external business changes. Trust among employees within an
organisation increases positive internal relationships and knowledge sharing, resulting in the
creation of a common strategic vision (Muduli et al., 2013; Muduli et al., 2013).

3.10 Strategic Partnership and Relationships (PDF10)

Strategic partnerships and relationships relate to the collective effort of individuals or groups
of people who share a common purpose and values, working together to achieve a common
goal or objective within specific settings. Organisational mutual trust, respect and
understanding can only be developed when both top management and employees work
together to identify solutions to enhance environmentally friendly practices that are
sustainable (Muduli et al., 2013; Chin et al., 2015).

3.11 Intention and motivation towards green initiatives (PDF11)

Green progression can be described as processes or activities that aim to improve
organisational resource efficiency by minimising resources used in the production of unit
outputs, as well as resource productivity in enabling the generation of added value from the
resources used (Frone, 2017). These are the creative solutions that are generated from either
individual or cross-functional groups of employees (Dubey et al., 2017); moreover,
innovative ideas are generated when there is sufficient support and development initiatives
within an organisation that enable learning through knowledge sharing and skill
improvement. Adequate training programmes that focus on environmental issues can
encourage employees to devise eco-innovative solutions that can benefit both the staff and
increase organisational competitive advantage by improving ecological efficiency.

3.12 Green Project Management (PDF12)

Project management encompasses the planning, implementation, evaluation and management
of projects in an organisation. If not managed effectively, organisational response to change
can lead to negative outcomes and other associated risks as employees tend to resist change
(Dubey et al., 2017). Project management is an essential tool that equips managers with the
necessary skills to be able to manage change effectively; leaders have to devise risk

11
management solutions that enable organisations to reduce risks in the implementation of
organisational development practices such as CE (Ngai, 2008).

3.13 Customer Relationship Management (PDF13)

Customer Relationship Management (CRM) is a fundamental critical success factor that can
be used by manufacturing firms in managing their relationship with customers; good
managers enhance and promote CSC practices from the purchasing stages to the eventual
return, reuse and remanufacture of products (Stock et al., 2010). The growing concern over
plastic wastage and environmental pollution has led globally to a growing number of
customers not only changing their ways on waste disposal, but also increasing pressure on
organisations to implement new practices in which recycling, reuse and remanufacturing of
products can be enhanced (EMF, 2012).

3.14 Welcoming green initiatives (PDF14)

Motivating employees involves initiatives and activities that can be used in organising,
planning and creating a better environment to promote circular activities. The ability of the
leadership and management in guiding its employees in the step-by-step process in the
adoption and implementation stages creates an environment where individuals feel included
and involved, hence promoting effective participation and greater commitment (Muduli et al.,
2013).
4. Analysis of people driven factors of CE in SCs of SMEs

To achieve the objectives of the study, the research methodology framework presented in
Figure 1 was followed.

12
 Figure 1. Methodology framework followed to conduct the study
4.1 Analysis of factors using DEMATEL methodology
The causal relationship of people driven factors of CE are analysed using Decision Making
Trial and Evaluation Laboratory (DEMATEL) methodology. DEMATEL is a MCDM
methodology which is widely used by many researchers in different fields of applications.
Yadegaridehkordi et al. (2018) used DEMATEL to analyse the factors influencing adoption
of big data technologies. Nilashi et al. (2019) used DEMATEL to analyse inter-relationships
among factors influencing adoption of medical tourism in Malaysia. Song et al. (2020) used
DEMATEL to analyse the inter-relationships among barriers of sustainable production. Garg
(2021) uses a DEMATEL method to analyse cause and effect groups of e-waste mitigation
strategies. To measure the cause-and-effect relationships among PDFs, DEMATEL is a
widely used method to build a cause-effect model of selected factors. Experts were asked to
rate the impact based on 0-4 scale (i.e. ‘0’ means no influence and ‘4’ means very high
influence). The steps of DEMATEL are shown below:

Step 1: Development of initial direct relation matrix. In this step, we asked a panel of experts
to provide a rating to each factor by comparing it with others. Data was collected in the form
of 0-4 scale where 0 signifies no influence and 4 signifies very high influence. The average
direct relation matrix (A) is formed using Eq. (1) as shown in Table 1.

A = aij = where p is number of experts, (1)

<Insert Table 1 here>

13
14
Table 1. Initial direct relation matrix of people driven factor for CE
PDF1 PDF2 PDF3 PDF4 PDF5 PDF6 PDF7 PDF8 PDF9 PDF10 PDF11 PDF12 PDF13 PDF14
PDF1 0.000 3.667 3.556 3.111 3.222 3.222 3.111 3.333 2.889 3.333 3.222 3.556 2.889 3.556
PDF2 3.111 0.000 2.556 3.111 3.111 3.556 2.889 3.556 3.000 2.444 2.111 3.667 3.222 2.778
PDF3 3.000 2.444 0.000 2.889 2.444 2.667 3.333 3.444 3.111 3.556 3.222 3.222 3.111 3.556
PDF4 3.444 3.111 2.778 0.444 3.333 3.444 2.111 3.000 3.111 2.889 2.778 3.222 3.333 3.222
PDF5 2.778 3.111 2.556 3.444 0.000 3.556 2.667 3.444 3.111 3.000 3.111 3.222 3.111 3.333
PDF6 3.222 3.222 2.667 3.333 3.556 0.000 3.111 3.667 3.222 2.778 2.778 2.778 2.889 2.778
PDF7 3.444 3.000 3.222 3.222 3.000 3.111 0.000 3.222 3.556 3.333 3.222 3.444 3.111 3.333
PDF8 3.556 3.111 3.000 3.556 3.556 3.444 3.111 0.000 2.889 3.000 3.000 3.667 3.444 3.556
PDF9 2.889 3.556 2.889 3.333 3.222 3.444 3.222 2.889 0.000 3.444 2.889 3.000 3.000 3.000
PDF10 2.667 2.222 2.556 2.667 2.889 3.000 2.667 2.444 2.778 0.000 3.444 2.222 1.778 2.667
PDF11 2.778 2.222 2.667 2.444 2.667 2.222 2.667 2.889 3.111 3.444 0.000 2.333 2.000 2.667
PDF12 3.111 2.889 2.778 3.444 3.111 2.889 3.000 3.111 3.111 2.111 2.333 0.000 2.556 2.667
PDF13 3.111 2.556 2.556 2.667 2.667 2.444 2.444 3.111 2.444 2.111 2.222 2.889 0.000 2.333
PDF14 3.222 3.000 3.000 3.222 3.444 3.000 3.000 3.333 3.000 2.556 2.889 2.778 2.778 0.000

Step 2: Calculation for normalized relationship matrix. After development of initial direct relation matrix, the next step is to calculate
normalized direct relation matrix. Equations 2 and 3 were used to calculate elements of the normalized relationship matrix. The normalized
direct relationship matrix for people driven factors of CE is presented in Table 2.
(2)
(3)

Table 2. Normalized relation matrix of people driven factor for CE

PDF PDF PDF PDF1 PDF1
PDF1 PDF2 PDF3 PDF4 5 PDF6 7 PDF8 9 PDF10 1 2 PDF13 PDF14
PDF1 0.0000 0.085 0.0829 0.0725 0.075 0.0751 0.07 0.0777 0.06 0.0777 0.075 0.0829 0.0674 0.0829

15
 5 1 25 74 1
0.000 0.072 0.06 0.06 0.049
0.0725 0.0596 0.0725 0.0829 0.0829 0.0570 0.0855 0.0751 0.0648
PDF2 0 5 74 99 2
0.057 0.057 0.07 0.07 0.075
0.0699 0.0000 0.0674 0.0622 0.0803 0.0829 0.0751 0.0725 0.0829
PDF3 0 0 77 25 1
0.072 0.077 0.04 0.07 0.064
0.0803 0.0648 0.0000 0.0803 0.0699 0.0674 0.0751 0.0777 0.0751
PDF4 5 7 92 25 8
0.072 0.000 0.06 0.07 0.072
0.0648 0.0596 0.0803 0.0829 0.0803 0.0699 0.0751 0.0725 0.0777
PDF5 5 0 22 25 5
0.075 0.082 0.07 0.07 0.064
0.0751 0.0622 0.0777 0.0000 0.0855 0.0648 0.0648 0.0674 0.0648
PDF6 1 9 25 51 8
0.069 0.069 0.00 0.08 0.075
0.0803 0.0751 0.0751 0.0725 0.0751 0.0777 0.0803 0.0725 0.0777
PDF7 9 9 00 29 1
0.072 0.082 0.07 0.06 0.069
0.0829 0.0699 0.0829 0.0803 0.0000 0.0699 0.0855 0.0803 0.0829
PDF8 5 9 25 74 9
0.082 0.075 0.07 0.00 0.067
0.0674 0.0674 0.0777 0.0803 0.0674 0.0803 0.0699 0.0699 0.0699
PDF9 9 1 51 00 4
0.051 0.067 0.06 0.06 0.080
0.0622 0.0596 0.0622 0.0699 0.0570 0.0000 0.0518 0.0415 0.0622
PDF10 8 4 22 48 3
0.051 0.062 0.06 0.07 0.000
0.0648 0.0622 0.0570 0.0518 0.0674 0.0803 0.0544 0.0466 0.0622
PDF11 8 2 22 25 0
0.067 0.072 0.06 0.07 0.054
0.0725 0.0648 0.0803 0.0674 0.0725 0.0492 0.0000 0.0596 0.0622
PDF12 4 5 99 25 4
0.059 0.062 0.05 0.05 0.051
0.0725 0.0596 0.0622 0.0570 0.0725 0.0492 0.0674 0.0000 0.0544
PDF13 6 2 70 70 8
0.069 0.080 0.06 0.06 0.067
0.0751 0.0699 0.0751 0.0699 0.0777 0.0596 0.0648 0.0648 0.0000
PDF14 9 3 99 99 4

Step 3: Computation for total relation matrix. In this step, total relationship matrix is computed as shown in Equation 4. Equation 5 is used to
compute total relation matrix. The computed total relationship matrix for people driven factors of CE is presented in Table 3.

16
 (4)
(5)

Table 3. Total relation matrix of people driven factor for CE

PDF1 PDF2 PDF3 PDF4 PDF5 PDF6 PDF7 PDF8 PDF9 PDF10 PDF11 PDF12 PDF13 PDF14
PDF1 0.7517 0.7933 0.7659 0.8304 0.8210 0.8171 0.7663 0.8428 0.7967 0.7816 0.7664 0.8230 0.7611 0.8132
PDF2 0.7636 0.6619 0.6942 0.7741 0.7633 0.7686 0.7096 0.7901 0.7441 0.7101 0.6914 0.7702 0.7166 0.7425
PDF3 0.7719 0.7253 0.6481 0.7798 0.7600 0.7605 0.7288 0.7982 0.7570 0.7437 0.7249 0.7710 0.7233 0.7689
PDF4 0.7856 0.7441 0.7129 0.7310 0.7832 0.7816 0.7080 0.7946 0.7614 0.7341 0.7196 0.7761 0.7328 0.7666
PDF5 0.7758 0.7472 0.7116 0.7999 0.7146 0.7873 0.7226 0.8071 0.7650 0.7397 0.7297 0.7794 0.7315 0.7722
PDF6 0.7806 0.7458 0.7102 0.7936 0.7870 0.7069 0.7279 0.8074 0.7633 0.7317 0.7193 0.7668 0.7235 0.7574
PDF7 0.8187 0.7730 0.7526 0.8252 0.8093 0.8075 0.6918 0.8328 0.8030 0.7750 0.7598 0.8133 0.7588 0.8015
PDF8 0.8325 0.7862 0.7584 0.8437 0.8320 0.8256 0.7697 0.7748 0.8005 0.7783 0.7655 0.8293 0.7763 0.8171
PDF9 0.7834 0.7613 0.7234 0.8031 0.7897 0.7906 0.7391 0.8015 0.7029 0.7542 0.7305 0.7805 0.7343 0.7709
PDF10 0.6665 0.6275 0.6140 0.6756 0.6709 0.6699 0.6238 0.6774 0.6546 0.5749 0.6387 0.6529 0.6047 0.6546
PDF11 0.6706 0.6292 0.6181 0.6729 0.6681 0.6559 0.6256 0.6880 0.6629 0.6510 0.5660 0.6571 0.6109 0.6565
PDF12 0.7319 0.6949 0.6699 0.7487 0.7314 0.7236 0.6824 0.7485 0.7157 0.6741 0.6669 0.6599 0.6737 0.7096
PDF13 0.6704 0.6294 0.6090 0.6703 0.6609 0.6532 0.6140 0.6855 0.6419 0.6158 0.6077 0.6619 0.5601 0.6424
PDF14 0.7674 0.7286 0.7050 0.7778 0.7715 0.7589 0.7134 0.7872 0.7460 0.7148 0.7094 0.7536 0.7089 0.6837

Step 4: Row and column summation. In this step, the row elements of the total relation matrix are summed up to get row summation D.
Similarly, the column elements of the total relation matrix are summed up to get column summation R. Similarly, a row and column summation
operation is performed on the total relation matrix (. Equations 6 and 7 are used to calculate row and column summation respectively. The cause-
and-effect group for people driven factors of CE is presented in Table 4.

17
 (6)
(7)

Table 4. The Degree of prominence and the cause and effect net values
Di Ri Di + Ri Di – Ri Cause/Effect
PDF1 11.131 10.571 21.701 0.560 Cause
PDF2 10.300 10.048 20.348 0.253 Cause
PDF3 10.461 09.693 20.155 0.768 Cause
PDF4 10.532 10.726 21.258 -0.195 Effect
PDF5 10.584 10.563 21.147 0.021 Cause
PDF6 10.521 10.507 21.029 0.014 Cause
PDF7 11.022 09.823 20.845 1.199 Cause
PDF8 11.190 10.836 22.026 0.354 Cause
PDF9 10.665 10.315 20.980 0.350 Cause
PDF10 09.006 09.979 18.985 -0.973 Effect
PDF11 09.033 09.796 18.828 -0.763 Effect
PDF12 09.831 10.495 20.326 -0.664 Effect
PDF13 08.923 09.816 18.739 -0.894 Effect
PDF14 10.326 10.357 20.684 -0.031 Effect

5. Discussion and Implications

Over the last two decades, organisations have been under constant pressure to ensure that
they can promote productivity and profit growth while also preventing environmental
pollution in their SCs (Luthra et al., 2017). As such, CE has attracted both scholars and
practitioners as a method of enhancing organisational sustainability; the role played by
people-based factors in enabling the adoption and implementation of CE has been a key
factor to consider. Therefore, it is important that SME industries in developing economies
like Tanzania and India are able to focus on employing these factors. Company targets are to
achieve and support the development of not only business objectives, but also to tackle issues
that may affect the environment (Dubey et al., 2017). Data was collected from industry
experts and used to provide an analysis; this is detailed in the data analysis section. Hence,
based on the analysis as seen in Table 4, factors have been arranged in order of importance
based upon the D + R rating as follows: PDF8 – PDF1 – PDF4 – PDF5 – PDF6 – PDF9 –
PDF7 – PDF14 – PDF2 – PDF12 – PDF3 – PDF10 – PDF11 – PDF13. Additionally, based
on the D-R rating showing the overall data set of the experts, eight PDFs have been identified
as the cause group of factors; they are PDF1, PDF2, PDF3, PDF5, PDF6, PDF7, PDF8 and
PDF9. The remaining factors have been identified as the net effect group; these are PDF4,

18
PDF10, PDF11, PDF12, PDF13 and PDF14. More details can be seen in Table 4. The net
cause factors as seen above are categorized as influencing factors; the net effect factors are
considered as the influenced factors.

5.1 Influenced and influencing factors

Based on the above findings, the cause group, Training and Knowledge Sharing (PDF7) can
be seen to have the highest (D-R) influence score as a causal factor. This relates to building
and sharing of information and skills that equip employees with the ability to solve problems
more efficiently (Ngai et al., 2008). This is in agreement with Sarkis et al (2010) who point
out that the introduction of environmental training activities will equip employees with the
right skill set in developing and understanding how eco-friendly CE can be implemented.
The second highest PDF based on the (D-R) score is Strategic Employee Participation and
Recruitment (PDF3). This is the process through which employees can participate and be
involved in the strategic decision-making process of an organisation. This suggests that when
employees are treated as important stakeholders, this will increase positive results as high
emphasis is being placed in the involvement of employees which in turn empowers them to
perform better (Muduli et al., 2013). Therefore, involving employees is not only beneficial to
the organisation but is also a major factor that can encourage the success of eco-friendly and
environmental objectives (Ngai et al., 2008). This can lead to several benefits such as
increased commitment, trust and respect plus greater job satisfaction. These benefits can
make a positive impact on achieving a CE based business model for the organisation
(Massoud et al., 2011).
Strategic Management and Leadership Practices (PDF1) is seen as the third-ranking casual
factor. This indicates that effective leadership and management is an important aspect for the
effective implementation of change within an organisation by providing policies and
strategies that can guide employees. Due to current developments in technology and
globalisation, there has been increasing growth in resource overutilization (Govidan and
Hasangic, 2018). Muduli et al. (2013) state that industries need to be able to adopt CE
practices and systems to be able to reduce waste and reduce resource overuse while
promoting reuse, remanufacture and reuse strategies. That means that organisational
leadership and management should be able to stimulate and promote environmentally
friendly and efficient products. This factor plays a major role in enabling the adoption of CE
practices in the SCs of SMEs of developing economies. Thus, organisations should be able to
adjust their communication systems and offer support for employees; this will encourage staff

19
commitment to take actions and opportunities in enhancing environmentally sustainable
practices.
Strategic Planning and Alignment (PDF8) is the next factor in the cause group influence
criteria. It is vital to ensure that the fit between implementation, adoption and the overall
goals and objectives of organisations are carefully aligned to ensure commitment among
employees and managers within the organisation. The alignment approach should make sure
that both the organisation and its employees are ready for change. Support should be
provided in terms of resources, training etc to ensure that change-resistance is minimised as
well as showing that all stakeholders can benefit both before and after the implementation
stages. The selection of best practices as well as setting out realistic performance
measurement strategies is essential when changing processes to adopt CE as a business
model. Therefore, effective management of organisational strategy can be an effective tool in
ensuring best practice for the improvement of current processes and the development of new
business systems (Kahn et al., 2012).
Mutual Trust (PDF9) is another critical factor that has been identified as a cause criterion.
This is another important factor as it plays a major role in determining how willing
employees are in implementing changes within an organisational setting (Ngai et al., 2008).
Trust and respect are essential among employees, management and the leadership team as
this not only increases the levels of response but also improves communication. This creates
an environment to successfully introduce a collective strategic direction, for instance, the
implementation of CE as a business model. A lack of mutual trust and respect between
managers and employees can occur when either of the two does not appreciate the
contribution of the other. This can cause a decrease in morale and commitment which in turn
hinders the development of new business developments and solutions (Muduli et al., 2013).
However, by involving and empowering staff through the development of better
communication systems and providing training and participatory activities in major decision
making, trust and respect between the two groups can be boosted. With reduced tensions,
innovation and development of eco-friendly activities within the organisation can be
encouraged.
Inclusive Communication (PDF2) is the next factor in the cause group influence criteria.
Communication is another important aspect that is vital in enabling the transformation of
processes within an organisation (Dubey et al., 2017). Communication within an organisation
includes collective strategies, policies, procedures and objectives that are aimed at enhancing
knowledge sharing and skill improvement among team members. As such, effective

20
communication that is both top-down and bottom-up is essential in building trust among top
management and staff. From an employee’s context, effective communication is important as
it provides employees with the opportunity to share their ideas and thoughts, which in turn
can help in the development and implementation of CE within the organisation. Involving
employees in initial communication is useful in the development of a collaborative
workplace; this is necessary to enhance performance levels within different sections in the
business (Ngai et al., 2008). Hence, communication in terms of knowledge sharing can be a
major driver in the promotion of environmentally friendly and CE based manufacturing
decisions resulting in increased competitive advantage.
Organisational Culture (PDF5) is another major influencing factor in the R-C criteria.
Research conducted by Liu and Bai (2014) among 157 SMEs in China towards the
implementation of a circular business model, concluded that cultural and behavioural factors
within an organisation play a vital role in either promoting CE practices or act as a barrier in
the implementation process. The implementation and adoption of CE practices can force
organisations to re-engineer and reconfigure their processes outside traditional boundaries
(Yee and Oh, 2012). As such, this requires organisations to carefully plan and manage a
transformative strategy that is based on a structured methodology that will allow smooth
implementation (Nanayakkara et al., 2016).
Organisational Change Management (PDF6) is the final influential factor in the R-C criteria.
Change management is considered as a continuous factor that is ever-present in the
organisational lifecycle (Ngai et al., 2008). Changes can be a challenge when for instance,
employees in the organisation do not understand or feel included in the change process, hence
resulting in high resistance (Moduli et al., 2013). Organisational readiness for change is a
major determinant for successful implementation of new developments like CE.
Developments such as these can affect the business-as-usual processes; hence new skills will
be required (Sarkis et al., 2010). Therefore, managers must consider change management as a
critical competence required for successful implementation of CE.
Factors in the effect group also play a significant role in the adoption and implementation
process. Among these factors, Strategic Partnership and Relationships (PDF10) received the
highest score. Strategic Partnership and Relationships relate to the collective effort of
individuals or groups of people who share a common purpose and values, working together to
achieve a common goal or objective within specific settings. Organisational mutual trust,
respect and understanding can only be developed when both top management and employees

21
work together to provide a solution to enhancing environmentally friendly practices that are
sustainable (Muduli et al., 2013; Chin et al., 2015).
The other influenced factor that follows from the D-R criteria includes Customer
Relationship Management (PDF13). CE offers new ways of looking at enhancing
relationships among organisations, their markets, customers and the use of resources.
Customer inclusion can help in increasing pressure on organisations to improve their
processes and transform the current extract-make-dispose model to a reuse-remanufacture-
recycle economic model.
Intention and motivation towards green initiatives (PDF11) is another influenced factor in the
D-R criteria. This factor is essential for organisations since employees have a direct impact
on the successful implementation of new business developments. Hence based on this,
managers should be able to look for different ways in which they can encourage and motivate
their employees towards successful implementation of CE practices. These methods can be
both intrinsic and extrinsic such as higher remuneration, job security or improved working
conditions. By implementing these factors, employee morale can be increased.
Next is Green Project Management (PDF12) in the D-R influenced factor. Project
management is an essential tool that equips managers with the necessary skills to be able to
manage change effectively and risk management solutions that enable organisations to reduce
risks in the implementation of organisational development practices like CE (Ngai, 2008).
Another influenced factor based on D-R criteria is Performance Appraisal (PDF4).
Performance appraisals can be used as a strategic approach that bridges both the employee’s
goals and the overall goals and objectives of an organisation. As such, through aligning
organisational goals of enhancing circularity and establishing strategies where employees can
also benefit from new developments, the success of CE practices becomes more achievable.
Welcoming green initiatives (PDF14) is another influenced factor in the D-R criteria. CE
considers the introduction and development of new ways and procedures of increasing value
while providing opportunities within which organisations can reduce waste and basic costs of
resources. As such, green innovation aims at enhancing an organisation’s ability to cultivate
new ideas, new options and skill improvement that will result in the development of eco-
friendly activities.

5.2 Unique recommendations

Based on the above findings, for organisations to develop and to maintain an effective
strategic advantage it is essential to consider future opportunities and options to gain a higher

22
market share. The analysis below provides some practical considerations that can be used by
organisations; they may wish to consider these recommendations.

Enhancing Innovation: Technological advancements over the past two decades have been a
factor that has spearheaded the development of new ways to support sustainable business
practices (Heyes et al., 2018). SMEs can enhance their processes by investing and
incorporating ICT systems into their business production; this will assist them in the
development of CE solutions in their existing practice (Govidan et al., 2015). For instance, a
report by Bakker et al. (2014) shows that incorporating sustainable technologies such as
renewable energies can enhance resource efficiency and boost environmental performance.
Hence, by applying and investing in different technologies, organisations can develop
sustainable solutions that will enhance performance, resulting in greater efficiency and
effectiveness of business processes.
Organisational Culture: The success and development of any business strategy are dependent
on how people resources in the organisation are managed; employees are the primary source
of organisational growth and profitability (Muduli et al., 2013). The leadership and
management in an organisation are responsible for setting goals and objectives that in turn
become part of the culture of the organisation, determining how individuals interact and
behave (Luthra et al., 2017). CE is fast becoming one of the most vital initiatives in
sustainable environmental development for SMEs. Incorporating a culture where employees
are encouraged to develop new ways of working that promote circularity, as opposed to the
traditional linear model, is a factor that can determine the survival of a business (Heyes et al.,
2018). Understanding the importance of cultural change towards enhancing CE can have
major benefits in solidifying and gaining greater market advantage, thus improving overall
performance (Luthra et al., 2017).

6. Conclusions and future research directions

Based on the above analysis and findings, all of the cause group PDFs presented can be
helpful for SMEs in the successful adoption and implementation of CE within their SCs.
Furthermore, based on the cause-and-effect factors, managers will be able to determine the
most significant factors and therefore promote a wider understanding of the application of CE
in its business processes. Factors such as training and knowledge sharing, employee
participation, leadership and management plus strategic alignment are areas that managers
should closely examine to enhance the success levels of CE in the SCs of SMEs. This study
has focused on understanding the CE concept and its contribution to SMEs. It has also looked

23
at the background and the development of the concept based on the traditional linear business
model of take-use-dispose to a circular model of reuse-remanufacture-recycle. A
comprehensive literature review was developed to analyse this background and its
importance in enhancing circularity within an organisation. This paper has aimed at
understanding how CE can be of benefit if adopted and implemented effectively and how it
can contribute to the growth and development of SMEs in developing economies. Based on
the literature review, a gap in current research was identified - the factors that contribute to
the implementation of CE in organisations. Two main issues were identified; hard dimension
factors (strategy, technology, policies) and soft dimension factors (human resource). The
conclusion to this analysis will be further explained below. This research has attempted to
explore these areas and understand their impacts and contributions on the implementation and
adoption of CE in SMEs.
Based on the work recorded in past and contemporary literature, fourteen key PDFs were
identified to uncover the importance of soft-dimension factors (people-driven factors) in the
adoption and implementation of CE. These listed factors can be used in enhancing SC
performance in terms of developing an eco-friendly business solution model. As previously
mentioned, CE over the last two decades has become one of the most significant initiatives in
the development of eco-friendly strategies for performance improvements in SCs of SMEs
and indeed larger corporations. In this context, this research proposes a structural model that
is able to identify and analyse relevant factors, as well as evaluating their influence, related to
both organisations and consumers.
As stated in section 2, a structural model/technique was used in analysing the influence and
importance of the PDF. The DEMATEL technique was used in analysing the factors to
distinguish the cause-and-effect inter-relationships of the factors. The model helps in not only
understanding the causal inter-relationships of the factors, but also the strength of the
relationship between each factor. This was done by identifying how these factors had an
influence on each other from the point of view of an organisational expert. The findings of
the survey showed that factors PDF7, PDF3, PDF1, PDF8, PDF9, PDF2, PDF5 and PDF6 are
the cause group factors that need to be focused on. These are crucial to achieving the overall
desired goals of sustainability. Moreover, the remaining factors - PDF10, PDF13, PDF11,
PDF12, PDF4 and PDF14 - have been identified as the effect group; these factors require
improvements in the CE initiatives in organisational SCs. Furthermore, it can be concluded
that the cause group factors have highest priority and importance due to their direct influence
and impact. Managers should focus on these factors for the implementation and adoption of

24
CE as the cause group has a major influence on the effect group. It is important to understand
the impacts and benefits of CE; factors such as management and leadership, organisational
culture and strategic alignment have an increasingly effective influence in any successful
implementation. From a managerial perspective, by focusing on the cause group factors, this
can improve the decision-making process of CE implementation.

References
Agrawal, R., Wankhede, V. A., Kumar, A., & Luthra, S. (2020). Analysing the roadblocks of
circular economy adoption in the automobile sector: Reducing waste and environmental
perspectives. Business Strategy and the Environment. https://doi.org/10.1002/bse.2669
Al-Ghwayeen, W.S. and Abdallah, A.B (2018) Green Supply Chain Management and Export
Performance: The Mediating Role of Environmental Performance. Journal of Manufacturing
Technology Management, 29, 1233-1252.
Bai, C., Sarkis, J., & Dou, Y. (2015). Corporate sustainability development in China: review and
analysis. Industrial Management & Data Systems, 115(1), 5-40.
Bakker, C., Wang, F., Huisman, J., & Den Hollander, M. (2014). Products that go round: exploring
product life extension through design. Journal of cleaner Production, 69, 10-16.
Bansal, P., & Roth, K. (2000). Why companies go green: A model of ecological responsiveness.
Academy of Management Journal, 43(4), 717–736.
Chin, T. A., Tat, H. H., & Sulaiman, Z. (2015). Green supply chain management, environmental
collaboration and sustainability performance. Procedia Cirp, 26, 695-699.
Defee, C. and Stank, T. P. (2005). Applying the strategy-structure-performance paradigm to the
supply chain environment, The International Journal of Logistics Management, 16(1), 28-50.
Dey, P. K., Malesios, C., De, D., Budhwar, P., Chowdhury, S., & Cheffi, W. (2020). Circular
economy to enhance sustainability of small and medium‐sized enterprises. Business Strategy
and the Environment. https://doi.org/10.1002/bse.2492

Dubey, R., Gunasekaran, A. and Papadopoulos, T., 2017. Green supply chain management:
theoretical framework and further research directions. Benchmarking: An International
Journal, 24(1), 184-218.
El Kalla, M., Zec, D and Jugovic, A (2017). Container Ports Competition in Light of Contemporary
Liner Shipping Market Dynamics. Pomorstvo, 31 (2), pp.128-136.
EMF (Ellen MacArthur Foundation), and McKinsey & Co. (2012). Towards the Circular Economy:
Economic and Business Rationale for an Accelerated Transition. Retrieved 2013 May from
http://www.ellenmacarthurfoundation.org/business/reports

25
 Entezaminia, A., Heidari, M and Rahmani, D. (2017) Robust Aggregate Production Planning in a
Green Supply Chain Under Uncertainty Considering Reverse Logistics: A Case Study. The
International Journal of Advanced Manufacturing Technology, 90, 1507-1528.
Erol, S. (2016). Where is the Green in Industry 4.0? or How Information Systems can play a role in
creating Intelligent and Sustainable Production Systems of the Future. In First Workshop on
Green (Responsible, Ethical, Social/Sustainable) IT and IS–the Corporate Perspective, Vienna,
WU.
Fraser, J. (2017). Technological progress and economic growth: An Australian exposition 1965 to
2015 (Doctoral dissertation, Murdoch University).
Frei, R, Lothian, I, Bines, A, Butar Butar, M and Da Gama, L (2015). Performance in reverse supply
chains, Logistics Research Network Annual Conference (LRN), Derby, UK.
Frone, S. (2017). Eco-innovation promoting the circular economy in Romania.
Garg, C. P. (2021). Modeling the e-waste mitigation strategies using Grey-theory and DEMATEL
framework. Journal of Cleaner Production, 281, 124035.
Garza-Reyes, J. A. (2010). An investigation into some measures of manufacturing performance-
Overall Equipment Effectiveness (OEE), Process Capability (PC), OEE+ and ORE. LAP
Lambert Academic Publishing.
Geissdoerfer, M., Savaget, P., Bocken, N. M., & Hultink, E. J. (2017). The Circular Economy–A
new sustainability paradigm?. Journal of cleaner production, 143, 757-768.
Genovese, A., Acquaye, A. A., Figueroa, A., & Koh, S. L. (2017). Sustainable supply chain
management and the transition towards a circular economy: Evidence and some
applications. Omega, 66, 344-357.
Ghisellini, P., Cialani, C., & Ulgiati, S. (2016). A review on circular economy: the expected
transition to a balanced interplay of environmental and economic systems. Journal of Cleaner
production, 114, 11-32.
Giunipero, L. C., Hooker, R. E., & Denslow, D. (2012). Purchasing and supply management
sustainability: Drivers and barriers. Journal of Purchasing and Supply Management, 18(4),
258–269.
Glock, C. H., Grosse, E. H., Neumann, W. P., & Sgarbossa, F. (2017). Human factors in industrial
and logistic system design. Darmstadt Technical University, Department of Business
Administration, Economics and Law, Institute for Business Studies (BWL).
Govindan, K. and Hasanagic, M., (2018). A systematic review on drivers, barriers, and practices
towards circular economy: a supply chain perspective. International Journal of Production
Research, 56(1-2), pp.278-311.
Govindan, K., Soleimani, H., & Kannan, D. (2015). Reverse logistics and closed-loop supply chain:
A comprehensive review to explore the future. European journal of operational research,
240(3), 603-626.

26
 Gregson, N., Crang, M., Fuller, S., and Holmes, H. (2015). Interrogating the circular economy: the
moral economy of resource recovery in the EU. Economy and Society, 44, 218-243.
Guide, V. D. R., Harrison, T. P., and Van Wassenhove, L. N. (2003). The Challenge of Closed-Loop
Supply Chains. Interfaces, 33(6), 3-6.
Heyes, G., Sharmina, M., Mendoza, J. M. F., Gallego-Schmid, A., & Azapagic, A. (2018).
Developing and implementing circular economy business models in service-oriented
technology companies. Journal of Cleaner Production, 177, 621-632.
Hines, P., Lamming, R., Jones, D., Cousins, P., & Rich, N. (2000). Value stream management:
Strategy and excellence in the supply chain. Financial Times Prentice Hall.
Hult, G. T. M., Ketchen, D. J., and Arrfelt, M. (2007). Strategic Supply Chain Management:
Improving Performance Through a Culture of Competitiveness and Knowledge Development,
Strategic Management Journal, 28(10), 1035-1052.
Jabbour, C. J. C., de Sousa Jabbour, A. B. L., Sarkis, J., & Godinho Filho, M. (2019). Unlocking the
circular economy through new business models based on large-scale data: an integrative
framework and research agenda. Technological Forecasting and Social Change, 144, 546-552.
Jabbour, C. J. C., Sarkis, J., de Sousa Jabbour, A. B. L., Renwick, D. W. S., Singh, S. K.,
Grebinevych, O., ... & Godinho Filho, M. (2019b). Who is in charge? A review and a research
agenda on the ‘human side’of the circular economy. Journal of cleaner production, 222, 793-
801.
Jaffry, S., Pickering, H., Ghulam, Y., Whitmarsh, D., & Wattage, P. (2004). Consumer choices for
quality and sustainability labelled seafood products in the UK. Food Policy, 29(3), 215-228.
Jenkins, H. (2006). Small business champions for corporate social responsibility. Journal of
Business Ethics, 67(3), 241–256.
Jiang, K., Lepak, D.P., Hu, J. and Baer, J.C., (2012). How does human resource management
influence organizational outcomes? A meta-analytic investigation of mediating
mechanisms. Academy of management Journal, 55(6), 1264-1294.
Kahn, K. B., Barczak, G., Nicholas, J., Ledwith, A., & Perks, H. (2012). An examination of new
product development best practice. Journal of product innovation management, 29(2), 180-192.
Kalyar, M. N., Shoukat, A., & Shafique, I. (2019). Enhancing firms’ environmental performance
and financial performance through green supply chain management practices and institutional
pressures. Sustainability Accounting, Management and Policy Journal, 11(2), 451-476.
Korhonen, J., Honkasalo, A., & Seppälä, J. (2018). Circular economy: the concept and its
limitations. Ecological economics, 143, 37-46.
Liu, Y., & Bai, Y. (2014). An exploration of firms’ awareness and behavior of developing circular
economy: An empirical research in China. Resources, Conservation and Recycling, 87, 145-
152.

27
 Luthra, S., Govindan, K. and Mangla, S.K., (2017). Structural model for sustainable consumption
and production adoption—A grey-DEMATEL based approach. Resources, Conservation and
Recycling, 125, 198-207.
Manzini, E., & Vezzoli, C. (2003). Product-Service Systems and Sustainability. Opportunities for
sustainable solutions. UNEP, 11(254 2), 851–857
Massoud, J. A., Daily, B. F., & Bishop, J. W. (2011). Perceptions of environmental management
systems. Industrial Management & Data Systems, 111(1), 5-19
Maurizio, M., Secinaro, S. F., Dal Mas, F., Brescia, V., & Calandra, D. (2020). Industry 4.0 and
Circular Economy. An exploratory analysis of academic and practitioners' perspectives.
https://doi.org/10.1002/bse.2680
Merli, R., Preziosi, M., & Acampora, A. (2018). How do scholars approach the circular economy? A
systematic literature review. Journal of Cleaner Production, 178, 703-722.
Mollenkopf, D., Stolve, H., Tate, W. and Ueltschy, M. (2010). Green, Lean, and Global Supply
Chains. International Journal of Physical Distribution & Logistics Management. 40 (1/2), 14-
41.
Mont, O. (2002). Clarifying the concept of product – service system. Journal of Cleaner Production,
10, 237–245.
Muduli, K., Govindan, K., Barve, A., Kannan, D. and Geng, Y., (2013). Role of behavioural factors
in green supply chain management implementation in Indian mining industries. Resources,
conservation and recycling, 76, 50-60.
Müller, J.M., Kiel, D. and Voigt, K.I. (2018). What drives the implementation of industry 4.0? The
role of opportunities and challenges in the context of sustainability. Sustainability, 10(1), 247.
Murray, A., Skene, K., & Haynes, K. (2017). The circular economy: an interdisciplinary exploration
of the concept and application in a global context. Journal of business ethics, 140(3), 369-380.
Nanayakkara, S., Kusumsiri, N. and Perera, P. (2016). Adaptation of Diffusion of Innovations
Theory for Successful ERP Implementation. IJCST, 7(1), pp.25-29.
Nejati, M., Rabiei, S., & Jabbour, C. J. C. (2017). Envisioning the invisible: Understanding the
synergy between green human resource management and green supply chain management in
manufacturing firms in Iran in light of the moderating effect of employees' resistance to
change. Journal of Cleaner Production, 168, 163-172.
Ngai, E. W., Law, C. C., & Wat, F. K. (2008). Examining the critical success factors in the adoption
of enterprise resource planning. Computers in industry, 59(6), 548-564.
Nilashi, M., Samad, S., Manaf, A. A., Ahmadi, H., Rashid, T. A., Munshi, A., ... & Ahmed, O. H.
(2019). Factors influencing medical tourism adoption in Malaysia: A DEMATEL-Fuzzy
TOPSIS approach. Computers & Industrial Engineering, 137, 106005.
Paletta, A., & Bonoli, A. (2019). Governing the university in the perspective of the United Nations
2030 Agenda. International Journal of Sustainability in Higher Education, 20(3), 500-514.

28
 Ripanti, E. F., Tjahjono, B., & Fan, I. S. (2015, September). Circular economy in reverse logistics:
relationships and potential applications in product remanufacturing. In 20th Logistics Research
Network (LRN) Conference.
Sarkis, J., Gonzalez-Torre, P., & Adenso-Diaz, B. (2010). Stakeholder pressure and the adoption of
environmental practices: The mediating effect of training. Journal of Operations Management,
28(2), 163–176
Sivakumar, K., Jeyapaul, R., Vimal, K. E. K., & Ravi, P. (2018). A DEMATEL approach for
evaluating barriers for sustainable end-of-life practices. Journal Of Manufacturing Technology
Management, 29(6),1065-1091.
Song, W., Zhu, Y., & Zhao, Q. (2020). Analyzing barriers for adopting sustainable online
consumption: A rough hierarchical DEMATEL method. Computers & Industrial
Engineering, 140, 106279.
Stahel, W. R. (2013). Policy for material efficiency—sustainable taxation as a departure from the
throwaway society. Philosophical Transactions of the Royal Society A: Mathematical, Physical
and Engineering Sciences, 371(1986), 20110567.
Stahel, W., Reday, G. (1976). The potential for substituting manpower for energy, Report to the
Commission of the European Communities.
Stahel, W., (1982). The product life factor, in: Orr, G.S. (ed.), An Inquiry into the Nature of
Sustainable Societies. The Role of the Private Sector. Houston Area Research Centre, Houston,
72-105.
Stock, J., Boyer, S., & Harmon, T. (2010). Research opportunities in supply chain management.
Journal of the Academy of Marketing Science, 38(1), 32–41.
Tukker, A. (2015). Product services for a resource-efficient and circular economy–a review. Journal
of cleaner production, 97, 76-91.
Webster, K. (2015). The Circular Economy: A wealth of Flow. Ellen MacArthur Pub. Cowes: UK.
Yadegaridehkordi, E., Hourmand, M., Nilashi, M., Shuib, L., Ahani, A., & Ibrahim, O. (2018).
Influence of big data adoption on manufacturing companies' performance: An integrated
DEMATEL-ANFIS approach. Technological Forecasting and Social Change, 137, 199-210.
Yee, J. T., & Oh, S. C. (2012). Technology integration to business: Focusing on RFID,
interoperability, and sustainability for manufacturing, logistics, and supply chain
management. Springer Science & Business Media.
Yuan, Z., Bi, J., & Moriguichi, Y. (2006). The circular economy: A new development strategy in
China. Journal of Industrial Ecology, 10(1‐2), 4-8.

Yusliza, M.Y., Norazmi, N.A., Jabbour, C.J.C., Fernando, Y., Fawehinmi, O. and Seles, B.M.R.P.
(2019). Top management commitment, corporate social responsibility and green human

29
 resource management: A Malaysian study. Benchmarking: An International Journal, 26(6),
2051-2078.
Zhan, Y., Tan, K. H., Li, Y., & Tse, Y. K. (2018). Unlocking the power of big data in new product
development. Annals of Operations Research, 270(1), 577-595.
Zott, C., Amit, R., & Massa, L. (2011). The Business Model: Recent Developments and Future
Research. Journal of Management, 37(4), 1019–1042.

30