Evaluation of Circular Business Models: Using a Multi Criteria Decision Analysis for Decision Support for Manufacturing SMEs

Companies are currently faced with the question which circular business models (CBMs) are best suited for their organization to achieve the highest possible circularity of their resources. Considering the complexity of the decision problem, small and medium-sized enterprises (SMEs) need a thorough approach to conquer this challenge. Since there is currently a research gap the aim of this study is to develop decision support for SMEs in the manufacturing sector in industrialized countries. The objective is to enable SMEs in choosing the most suitable CBM for their organization, while prioritizing their resources and activities by focusing on critical success factors (SFs) for the implementation of the CBMs. Based on a literature review, the five most frequently mentioned CBMs and twelve general SFs have been identified and evaluated using a multi criteria decision analysis method (MCDA) called Fuzzy PROMETHEE. The results display the rankings of the SFs and the CBMs. Deriving from the SFs ranking, it can be concluded that the most important factors for the successful development and implementation of CBMs are primarily aspects such as training, education and motivation, followed by cooperation and collaboration with all stakeholders and the separate allocation of internal financial resources. According to the ranking of the CBMs, it is recommended that SMEs should implement the Circular Supplies Model first followed by the Resource Recovery Model, Product Lifecycle Extension Model, Product-Service Systems and Sharing Platforms.