Examining the roadblocks of circular economy adoption in micro, small, and medium enterprises (MSME) through sustainable development goals

Abstract

AbstractThe linear economy model is being transformed into a circular model to positively impact the environment, society, business, and sustainable development goals. However, emerging economies such as India face many significant roadblocks adapting to a circular model. Therefore, this study attempts first to assess and visualize the roadblocks in circular economy adoption in Indian micro, small, and medium enterprises (MSME) and then identify and evaluate the solutions to overcome these roadblocks. This paper explores 31 critical roadblocks and proposes 14 solutions in the pathway of circular economy through extant literature and expert inputs. Graph theory matrix approach (GTMA) is applied to calculate the comprehensive circular economy roadblock index. This value signifies the intensity of roadblocks taken altogether in an industry under consideration. Furthermore, fuzzy stepwise weight assessment ratio analysis (fuzzy‐SWARA) is used to compute the weights of individual roadblocks. After that, fuzzy‐weighted aggregated sum product assessment (fuzzy‐WASPAS) is used to rank the identified solutions and efficiently implement a circular economy. Finally, the research presents sensitivity analysis and the theoretical and managerial implications of the findings.