IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i7p5929-d1110551.html

Adoption of Circular Economy by Construction Industry SMEs: Organisational Growth Transition Study

Author

Listed:
  • Iniobong Beauty John

    (Department of Quantity Surveying, Faculty of Environmental Sciences, University of Lagos, Lagos 100213, Nigeria
    SARChl in Sustainable Construction Management and Leadership in the Built Environment, Faculty of Engineering and the Built Environment, University of Johannesburg, Johannesburg 2006, South Africa)

  • Samuel A. Adekunle

    (SARChl in Sustainable Construction Management and Leadership in the Built Environment, Faculty of Engineering and the Built Environment, University of Johannesburg, Johannesburg 2006, South Africa)

  • Clinton O. Aigbavboa

    (SARChl in Sustainable Construction Management and Leadership in the Built Environment, Faculty of Engineering and the Built Environment, University of Johannesburg, Johannesburg 2006, South Africa)

Abstract

A megatrend in the business environment poised at practically entrenching sustainability while ensuring global business competitiveness is viewed as a circular economy. At the firm level, circular economy practices distinguish firms for excellent product and service delivery, thus ensuring competitive advantage. The construction firm of the future will practice circular economy while adopting sustainable technology. This study is focused on assessing organisational growth transition among small and medium construction enterprises. A quantitative approach was adopted and structured questionnaires were administered among SME construction firms. The findings reveal the critical factors affecting organisational growth and transition in achieving a circular economy include availability of logistics infrastructure and firm’s market share, among others. Factor analysis indicated PCA extractions showing the component’s rotation indicating four structure components in the variables. The study named the four clusters required for achieving organisational growth transition as: firm positioning for competitive advantage, personnel management, service delivery and government policy and support. The study provides a foundation for other organisational growth transition studies stemming from circular economy adoption among construction industry SMEs.

Suggested Citation

  • Iniobong Beauty John & Samuel A. Adekunle & Clinton O. Aigbavboa, 2023. "Adoption of Circular Economy by Construction Industry SMEs: Organisational Growth Transition Study," Sustainability, MDPI, vol. 15(7), pages 1-13, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:5929-:d:1110551
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/7/5929/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/7/5929/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David J. Teece, 2019. "A capability theory of the firm: an economics and (Strategic) management perspective," New Zealand Economic Papers, Taylor & Francis Journals, vol. 53(1), pages 1-43, January.
    2. Korhonen, Jouni & Honkasalo, Antero & Seppälä, Jyri, 2018. "Circular Economy: The Concept and its Limitations," Ecological Economics, Elsevier, vol. 143(C), pages 37-46.
    3. Luz Elba Torres-Guevara & Vanessa Prieto-Sandoval & Andres Mejia-Villa, 2021. "Success Drivers for Implementing Circular Economy: A Case Study from the Building Sector in Colombia," Sustainability, MDPI, vol. 13(3), pages 1-17, January.
    4. Kirchherr, Julian & Reike, Denise & Hekkert, Marko, 2017. "Conceptualizing the circular economy: An analysis of 114 definitions," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 221-232.
    5. Mateusz Lewandowski, 2016. "Designing the Business Models for Circular Economy—Towards the Conceptual Framework," Sustainability, MDPI, vol. 8(1), pages 1-28, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yusuf Berkay Metinal & Gulden Gumusburun Ayalp, 2025. "Uncovering Barriers to Circular Construction: A Global Scientometric Review and Future Research Agenda," Sustainability, MDPI, vol. 17(4), pages 1-50, February.
    2. Sarmistha Mishra & Dukhabandhu Sahoo & Souryabrata Mohapatra, 2024. "Circular economy adoption in MSMEs: unveiling enablers and barriers," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 24(2), pages 237-263, November.
    3. Chukwuebuka C. Okafor & Juliet C. Ibekwe & Valentine E. Nnadi & Festus A. Otunomo & Charles C. Ajaero, 2026. "A Review on Trends, Challenges, and Strategies for Circular Economy in Nigerian Construction," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(1), pages 1260-1304, February.
    4. João M. Lopes & Sofia Gomes & Elisabete Nogueira, 2025. "Pathways to Circularity: Engagement Patterns of European SMEs in the Circular Economy," Business Strategy and the Environment, Wiley Blackwell, vol. 34(3), pages 3848-3864, March.
    5. Sarmistha Mishra & Dukhabandhu Sahoo & Souryabrata Mohapatra, 2025. "Barriers to Circular Economy Adoption in MSMEs: a WINGS Analysis of Challenges in Developing Economies," Circular Economy and Sustainability, Springer, vol. 5(6), pages 4919-4944, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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).
    2. Chembessi Chedrak & Gohoungodji Paulin & Juste Rajaonson, 2023. "“A fine wine, better with age”: Circular economy historical roots and influential publications: A bibliometric analysis using Reference Publication Year Spectroscopy (RPYS)," Journal of Industrial Ecology, Yale University, vol. 27(6), pages 1593-1612, December.
    3. Gilbert Silvius & Aydan Ismayilova & Vicente Sales-Vivó & Micol Costi, 2021. "Exploring Barriers for Circularity in the EU Furniture Industry," Sustainability, MDPI, vol. 13(19), pages 1-25, October.
    4. Mechthild Donner & Ivana Radić & Yamna Erraach & Fatima El Hadad-Gauthier, 2022. "Implementation of circular business models for olive oil waste and by-product valorization," Post-Print hal-03756908, HAL.
    5. Mechthild Donner & Ivana Radić & Yamna Erraach & Fatima El Hadad-Gauthier, 2022. "Implementation of Circular Business Models for Olive Oil Waste and By-Product Valorization," Resources, MDPI, vol. 11(7), pages 1-18, July.
    6. Bhavesh Kumar & Love Kumar & Avinash Kumar & Ramna Kumari & Uroosa Tagar & Claudio Sassanelli, 2024. "Green finance in circular economy: a literature review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 16419-16459, July.
    7. Denise Reike & Marko P. Hekkert & Simona O. Negro, 2023. "Understanding circular economy transitions: The case of circular textiles," Business Strategy and the Environment, Wiley Blackwell, vol. 32(3), pages 1032-1058, March.
    8. Katherine Mansilla-Obando & Fabiola Jeldes-Delgado & Nataly Guiñez-Cabrera, 2022. "Circular Economy Strategies with Social Implications: Findings from a Case Study," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    9. Augusto Bianchini & Patricia Guarnieri & Jessica Rossi, 2022. "A Framework to Assess Social Indicators in a Circular Economy Perspective," Sustainability, MDPI, vol. 14(13), pages 1-21, June.
    10. D'Amato, D. & Korhonen, J., 2021. "Integrating the green economy, circular economy and bioeconomy in a strategic sustainability framework," Ecological Economics, Elsevier, vol. 188(C).
    11. Patricia Guarnieri & Lucio Camara e Silva & Fazli Haleem & Augusto Bianchini & Jessica Rossi & Brian Vejrum Wæhrens & Sami Farooq & Edgar Reyes & André Luiz Nascimento Reis & Barbara de Oliveira Vieir, 2022. "How Can We Measure the Prioritization of Strategies for Transitioning to a Circular Economy at Macro Level? A New Approach," Sustainability, MDPI, vol. 15(1), pages 1-31, December.
    12. Andrew Wear, 2023. "Emergent concepts in local economic development," Local Economy, London South Bank University, vol. 38(8), pages 804-826, December.
    13. José Miguel Rodríguez-Antón & Luis Rubio-Andrada & María Soledad Celemín-Pedroche & Soraya María Ruíz-Peñalver, 2022. "From the circular economy to the sustainable development goals in the European Union: an empirical comparison," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 22(1), pages 67-95, March.
    14. Kerem Toker & Ali Görener, 2023. "Evaluation of circular economy business models for SMEs using spherical fuzzy TOPSIS: an application from a developing countries’ perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1700-1741, February.
    15. Alfonso Aranda-Us?n & Jos? M. Moneva & Pilar Portillo-Tarragona & Fernando Llena-Macarulla, 2018. "Measurement of the circular economy in businesses: Impact and implications for regional policies," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(2), pages 187-205.
    16. Fazal Ur Rehman & Basheer M. Al-Ghazali & Mohamed Riyazi M. Farook, 2022. "Interplay in Circular Economy Innovation, Business Model Innovation, SDGs, and Government Incentives: A Comparative Analysis of Pakistani, Malaysian, and Chinese SMEs," Sustainability, MDPI, vol. 14(23), pages 1-31, November.
    17. Maryam Hina & Chetna Chauhan & Rajat Sharma & Amandeep Dhir, 2023. "Circular economy business models as pillars of sustainability: Where are we now, and where are we heading?," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6182-6209, December.
    18. Ángela Triguero & Lourdes Moreno‐Mondéjar & Francisco J. Sáez‐Martínez, 2023. "Circular economy and firm performance: The influence of product life cycle analysis, upcycling, and redesign," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2318-2331, August.
    19. Ewa Mazur-Wierzbicka, 2021. "Towards Circular Economy—A Comparative Analysis of the Countries of the European Union," Resources, MDPI, vol. 10(5), pages 1-25, May.
    20. Jodie Conduit & Ingo Oswald Karpen & Taylor Willmott, 2023. "User circularity practices: Adopting a user stewardship perspective for a circular economy," AMS Review, Springer;Academy of Marketing Science, vol. 13(3), pages 211-231, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:5929-:d:1110551. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.