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Modeling the Barriers of a Circular Economy for Enhancing Competitiveness: An Interpretive Structural Modeling Approach

Author

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  • Ratema Mpho Gift

    (University of Johannesburg)

  • Surajit Bag

    (Delhi-NCR)

  • J. H. C. Pretorius

    (University of Johannesburg)

Abstract

This paper aims to identify the critical barriers to the circular economy (CE) within South African manufacturing companies and further model the barriers. A literature review was done to identify the barriers of CE in the context of South Africa and used as an input in the interpretive structural modeling (ISM) technique. This study discovered that the key challenges to CE adoption in the South African manufacturing industry are a lack of proper communication of the CE objectives, which dramatically impacts the whole system, indicating that it should be prioritized. The removal of all the CE obstacles will enhance the firm’s competitiveness in the market. The unique contribution of this study is the alternate approach used in theory building. The CE barriers were identified in the context of South Africa and further the interrelationships among the barriers were presented. The findings will be helpful for managers and policymakers.

Suggested Citation

  • Ratema Mpho Gift & Surajit Bag & J. H. C. Pretorius, 2023. "Modeling the Barriers of a Circular Economy for Enhancing Competitiveness: An Interpretive Structural Modeling Approach," International Journal of Global Business and Competitiveness, Springer, vol. 18(2), pages 91-100, December.
    • Handle: RePEc:spr:ijogbc:v:18:y:2023:i:2:d:10.1007_s42943-023-00070-6
    DOI: 10.1007/s42943-023-00070-6
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    References listed on IDEAS

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    1. Singh, Rajesh Kumar & Kumar, Anil & Garza-Reyes, Jose Arturo & de Sá, Marcelo M., 2020. "Managing operations for circular economy in the mining sector: An analysis of barriers intensity," Resources Policy, Elsevier, vol. 69(C).
    2. Kannan Govindan & Mia Hasanagic, 2018. "A systematic review on drivers, barriers, and practices towards circular economy: a supply chain perspective," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 278-311, January.
    3. Bag, Surajit & Rahman, Muhammad Sabbir & Srivastava, Gautam & Chan, Hau-Ling & Bryde, David J., 2022. "The role of big data and predictive analytics in developing a resilient supply chain network in the South African mining industry against extreme weather events," International Journal of Production Economics, Elsevier, vol. 251(C).
    4. Bag, Surajit & Dhamija, Pavitra & Bryde, David J. & Singh, Rajesh Kumar, 2022. "Effect of eco-innovation on green supply chain management, circular economy capability, and performance of small and medium enterprises," Journal of Business Research, Elsevier, vol. 141(C), pages 60-72.
    5. Andrea Chiarini, 2019. "Factors for succeeding in ISO 14001 implementation in Italian construction industry," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 794-803, July.
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