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Circular economy adoption barriers: An extended fuzzy best–worst method using fuzzy DEMATEL and Supermatrix structure

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  • Kannan Govindan
  • Arash Khalili Nasr
  • Farzane Karimi
  • Hassan Mina

Abstract

In the real world, there are complex decision‐making problems in which a variety of intertwined factors and hierarchical structures exist, and it is difficult or impossible to solve these problems using classical methods. The prioritization of circular economy (CE) adoption barriers is one such complex problem that cannot be solved using current classical methods. Hence, in this paper, for the first time, a new method, namely, FBWDS, is developed. FBWDS derives from the combination of fuzzy best–worst method (BWM), fuzzy decision‐making trial and evaluation laboratory (DEMATEL), and Supermatrix structure. This proposed method establishes weights of the intertwined factors in hierarchical networks under uncertainty; these weighted factors and their interdependencies are calculated using the fuzzy BWM and fuzzy DEMATEL techniques, respectively. In addition, the Supermatrix structure is applied to integrate the results of these two techniques. The proposed approach efficiency is evaluated in the field of the CE adoption barriers using data from a cable and wire industry in Iran. The results showed that “high setup costs,” “financial limitations,” and “absence of public awareness about CE” rank as the most challenging barriers, and “lack of standards for designing recycled products” and “absence of standard system to evaluate performance” are the least important barriers to CE adoption in the cable and wire industry.

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  • Kannan Govindan & Arash Khalili Nasr & Farzane Karimi & Hassan Mina, 2022. "Circular economy adoption barriers: An extended fuzzy best–worst method using fuzzy DEMATEL and Supermatrix structure," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1566-1586, May.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:4:p:1566-1586
    DOI: 10.1002/bse.2970
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    References listed on IDEAS

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    3. Rubee Singh & Shahbaz Khan & Piera Centobelli, 2022. "Investigating the Interplay between Social Performance and Organisational Factors Supporting Circular Economy Practices," Sustainability, MDPI, vol. 14(24), pages 1-21, December.
    4. Jeng-Bang Wang & Guan-Hua Wang & Chung-Ya Ou, 2023. "The Key Factors for Sustainability Reporting Adoption in the Semiconductor Industry Using the Hybrid FRST-PSO Technique and Fuzzy DEMATEL Approach," Sustainability, MDPI, vol. 15(3), pages 1-19, January.
    5. Castro-Lopez, Adrian & Iglesias, Victor & Santos-Vijande, María Leticia, 2023. "Organizational capabilities and institutional pressures in the adoption of circular economy," Journal of Business Research, Elsevier, vol. 161(C).
    6. Mahmud, Priom & Ahmed, Mushaer & Janan, Farhatul & Xames, Md Doulotuzzaman & Chowdhury, Naimur Rahman, 2023. "Strategies to develop a sustainable and resilient vaccine supply chain in the context of a developing economy," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    7. Govindan, Kannan, 2023. "Pathways to low carbon energy transition through multi criteria assessment of offshore wind energy barriers," Technological Forecasting and Social Change, Elsevier, vol. 187(C).

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