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<p>The furniture industry, characterized by intensive resource use and waste generation, faces mounting pressure to adopt Circular Economy (CE) practices. While CE offers opportunities to reduce environmental impacts, enhance material efficiency, and align with Sustainable Development Goals (SDGs), its adoption in emerging economies remains limited. This study investigates the key barriers hindering CE implementation in the Indian furniture sector, where urbanization, rising waste, and resource depletion intensify sustainability challenges. Drawing from literature and expert insights, six barriers were identified: financial, technological, supply chain, top management, government and policy, and customer and market awareness. To analyze their interrelationships and relative importance, Grey Influence Analysis (GINA)-a robust causal modeling technique suited for uncertainty and interdependency was applied. The results reveal that government and policy barriers exert the greatest influence across the system, followed by supply chain and financial barriers, while top management resistance, consumer and market awareness was least influential. These findings underscore the need for sector-specific regulations, fiscal incentives, and investment in recycling and reverse logistics infrastructure and public awareness. Hence the study contributes to CE scholarship by offering an empirically validated ranking of barriers and provides practical insights for policymakers, manufacturers, and supply chain actors seeking to accelerate circular transitions in the furniture industry.</p>

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Barriers to Circular Economy Implementation: Evidence from the Furniture Industry

  • 期刊论文

  • 发表日期：

    2026年3月26日

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  • Richa Yadav,
  • Pinosh Kumar Hajoary

摘要

The furniture industry, characterized by intensive resource use and waste generation, faces mounting pressure to adopt Circular Economy (CE) practices. While CE offers opportunities to reduce environmental impacts, enhance material efficiency, and align with Sustainable Development Goals (SDGs), its adoption in emerging economies remains limited. This study investigates the key barriers hindering CE implementation in the Indian furniture sector, where urbanization, rising waste, and resource depletion intensify sustainability challenges. Drawing from literature and expert insights, six barriers were identified: financial, technological, supply chain, top management, government and policy, and customer and market awareness. To analyze their interrelationships and relative importance, Grey Influence Analysis (GINA)-a robust causal modeling technique suited for uncertainty and interdependency was applied. The results reveal that government and policy barriers exert the greatest influence across the system, followed by supply chain and financial barriers, while top management resistance, consumer and market awareness was least influential. These findings underscore the need for sector-specific regulations, fiscal incentives, and investment in recycling and reverse logistics infrastructure and public awareness. Hence the study contributes to CE scholarship by offering an empirically validated ranking of barriers and provides practical insights for policymakers, manufacturers, and supply chain actors seeking to accelerate circular transitions in the furniture industry.