Circular economy practices in a developing economy: Barriers to be defeated

Abstract

The study attempts to identify the barriers against the adoption of Circular Economic (CE) in the food supply chain (FSC) in the context of a developing economy. A total of 18 significant barriers are identified via a detailed literature review and from expert opinions. The Fuzzy-Decision Making Trial and Evaluation Laboratory (Fuzzy-DEMATEL) method was applied to prioritize and categorize the barriers. Further, the identified barriers were ranked to determine the bottlenecks in the transition from linear to the CE, and the cause-effect relationship was drawn. The findings reveal that lack of technology and innovation, lack of robust estimate about food waste, lack of supply chain (SC) design and optimization, and lack of economic benefits and high cost of investment are the most significant barriers impacting the adoption of CE. Unlike previous studies, this article shows that CE's biological cycle via technological interventions and innovation should be fostered as a source of reducing barriers to CE in a FSC in a developing economy. This study is unique in building a theoretical foundation for identifying and prioritizing adoption barriers of CE in a FSC using the Fuzzy-DEMATEL method. The findings will help decision-makers, managers, and government formulate the strategies/policies for effective implementation of CE in a FSC.