Assessing Circular Economy Readiness Factors: Empirical Insights from a Developing Nation

Abstract

The Circular Economy concept has gained popularity among both researchers and practitioners. However, a comprehensive methodology for assessing a company's Circular Economy Readiness is lacking. Current assessment procedures often lack clarity in terms of metric and indicator selection. To bridge this gap, this paper introduces a novel model that integrates Circular Economy Readiness factors. To address Circular Economy Readiness in developing nations, this study amalgamates national, organizational, and individual readiness factors into a unified model, drawing from recent literature. Readiness for change models and frameworks from selected publications are synthesized to establish a comprehensive conceptual model for Circular Economy Readiness. Five Individual Readiness factors, twelve Organizational Readiness factors, and one factor under National Readiness are identified. These factors analyze CER readiness levels. The model is tested on Colombo Stock Exchange-listed companies, yielding practical insights for policymakers and practitioners to design and implement effective circular economy strategies. The study's findings can be transformed into metrics to gauge CER in developing countries and perhaps in other nations. By comprehensively investigating factors influencing CER across levels and sectors, this research empowers policymakers and practitioners to devise strategies that facilitate the transition to a circular economy.