Purpose This study aims to identify and model the key barriers impeding the adoption of Circular Economy (CE) practices in supply chains and to develop a structured framework that supports decision-making and policy formulation for a sustainable transition. Design/methodology/approach A systematic literature review was conducted following the PRISMA methodology to extract critical barriers to CE implementation. These barriers were validated and contextualized through expert consultations from industry and academia. The Interpretive Structural Modelling (ISM) technique was applied to analyze interrelationships and hierarchy among the barriers, followed by MICMAC analysis to classify them based on their driving and dependence power. Findings The ISM-MICMAC analysis revealed that Policy/Regulatory Void (B4) and Training and Upskilling (B1) are the most influential drivers of CE transition, forming the foundation for systemic change. Barriers such as Complexity (B3), Reverse Logistics Gaps (B5), and Digital Infrastructure Gaps (B7) act as linkage variables, while Stakeholder Collaboration (B2) and Organizational Resistance (B9) are dependent outcomes. The study presents a multi-level structural framework showing how addressing high-driving barriers first can trigger positive cascading effects across the supply chain. Originality This research is among the first to apply ISM-MICMAC modelling to CE transition barriers in supply chains from a developing economy perspective with specific context to India, offering a systemic and actionable structure for CE adoption. Research limitations/implications The study provides theoretical and practical insights for policymakers and industry leaders to navigate CE adoption. Future research may focus on sector-specific customization or real-time implementation using digital twins. Practical implications The framework can guide investment prioritization, regulatory planning, and capacity-building initiatives for scalable CE strategies. Social implications A structured CE transition can reduce environmental impact, promote resource efficiency, and create inclusive green jobs.

A comprehensive decision framework to support circular economy transition in modern supply chains

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2026年5月26日

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Dr. Himanshu M. Shukla,
Dr. Gayathri Band

摘要

Purpose

This study aims to identify and model the key barriers impeding the adoption of Circular Economy (CE) practices in supply chains and to develop a structured framework that supports decision-making and policy formulation for a sustainable transition.

Design/methodology/approach

A systematic literature review was conducted following the PRISMA methodology to extract critical barriers to CE implementation. These barriers were validated and contextualized through expert consultations from industry and academia. The Interpretive Structural Modelling (ISM) technique was applied to analyze interrelationships and hierarchy among the barriers, followed by MICMAC analysis to classify them based on their driving and dependence power.

Findings

The ISM-MICMAC analysis revealed that Policy/Regulatory Void (B4) and Training and Upskilling (B1) are the most influential drivers of CE transition, forming the foundation for systemic change. Barriers such as Complexity (B3), Reverse Logistics Gaps (B5), and Digital Infrastructure Gaps (B7) act as linkage variables, while Stakeholder Collaboration (B2) and Organizational Resistance (B9) are dependent outcomes. The study presents a multi-level structural framework showing how addressing high-driving barriers first can trigger positive cascading effects across the supply chain.

Originality

This research is among the first to apply ISM-MICMAC modelling to CE transition barriers in supply chains from a developing economy perspective with specific context to India, offering a systemic and actionable structure for CE adoption.

Research limitations/implications

The study provides theoretical and practical insights for policymakers and industry leaders to navigate CE adoption. Future research may focus on sector-specific customization or real-time implementation using digital twins.

Practical implications

The framework can guide investment prioritization, regulatory planning, and capacity-building initiatives for scalable CE strategies.

Social implications

A structured CE transition can reduce environmental impact, promote resource efficiency, and create inclusive green jobs.