Implementing Circular Economy Practices in Apparel Manufacturing Sector in Sri Lanka: Explore Challenges and Opportunities

PurposeUncovering the relationship between Industry 4.0 (I4.0) technologies and circular economy (CE) practices is critical not only for implementing CE but also for leveraging I4.0 to achieve sustainable development goals. However, the potential connection between them – especially how different I4.0 technologies may influence various CE practices – remains inadequately researched. The purpose of this study was to quantitatively explore the impacts of various I4.0 technologies on CE practices.Design/methodology/approachA mixed method consisting of a systematic literature review, content analysis, and social network analysis was adopted. First, 266 articles were selected and mined for contents of I4.0 technologies and CE practices; 27 I4.0 technologies and 21 CE practices were identified. Second, 62 articles were found that prove the positive influence of I4.0 technologies on CE practices, and 124 relationships were identified. Third, based on evidence supporting the link between I4.0 technologies and CE practices, a two-mode network and two one-mode networks were constructed, and their network density and degree centrality indicators were analyzed.FindingsI4.0 technologies have a low application scope and degree for promoting CE. The adoption of a single I4.0 technology has limited effect on CE practices, and wider benefits can be realized through integrating I4.0 technologies. The Internet of Things (IoT), additive manufacturing, big data and analytics, and artificial intelligence (AI) are among the top technologies promoting CE implementation and reduction and recycling were identified as the main mechanism. The integration of these technologies is the most popular and effective. Twelve CE practices were identified to be the most widely implemented and supported by I4.0 technologies.Research limitations/implicationsFirst, only journal articles, reviews, and online publications written in English were selected, excluding articles published in other languages. Therefore, the results obtained only represent a specific group of scholars, which may be fragmented to a certain extent. Second, because the extraction of the impact of I4.0 on CE mainly relies on a manual literature review, this paper only provides the statistics of the number of publications involving relationships, while lacking the weight measurement of relationships.Originality/valueA comprehensive, quantitative, and visual analysis method was employed to unveil the current implementation levels of I4.0 technologies and CE practices. Further, it was explored how different I4.0 technologies can affect various CE aspects, how different I4.0 technologies are integrated to promote CE realization, and how various CE practices are implemented simultaneously by I4.0 technologies.

A Circular Economy (CE) is an economic model designed to eliminate waste and pollution by keeping products, materials, and resources in use for as long as possible through recycling, repair, reuse, remanufacturing, and regeneration. It shifts away from the traditional linear economy ("take-make-waste") to create closed-loop systems that prioritize sustainability and resource efficiency. This study investigates consumer perceptions of circular economy (CE) practices in the fashion and apparel industry, aiming to bridge the gap between environmental concern and sustainable purchasing behaviour. Through a descriptive research design, data from 388 respondents were collected via a structured online questionnaire employing a 5-point Likert scale. Statistical analyses, including independent t-tests, chi-square tests, and frequency-percentage analyses, were conducted using SPSS to evaluate awareness, attitudes, and barriers. Key findings reveal significant disparities in CE awareness, with urban and suburban consumers demonstrating higher awareness compared to rural populations. Socio-demographic factors such as education, employment status, and income strongly influence attitudes, with higher-income, educated individuals showing greater pro-CE inclinations. Critical barriers hindering CE adoption include affordability (72.4%), limited availability (73.5%), hygiene concerns (77.3%), and perceptions of style inadequacy (73.7%). These barriers underscore the misalignment between consumer expectations and current CE offerings in fashion. The study highlights persistent challenges in translating environmental awareness into actionable behaviour.To address these gaps, the research advocates for a holistic strategy integrating education, affordable pricing, trend-aligned designs, and quality assurance. Collaborative efforts among policymakers, brands, and communities are essential to create equitable CE ecosystems that prioritize inclusivity and balance functional-aesthetic demands. By addressing demographic disparities and perceptual barriers, the fashion industry can foster systemic behavioural change, aligning global sustainability goals with consumer needs. This research contributes actionable insights for stakeholders to enhance CE adoption, driving environmental and social resilience in the fashion sector. Keywords: Circular Economy, Fashion Industry, Consumer Perceptions, Sustainability Barriers, Sustainable Fashion, Textile Recycling

The fashion industry, during production and post-consumption, has major adverse environmental impacts. With the recent circular economy (CE) practices initiative, discarded fashion materials are reused to recover value from the waste. However, the CE practices initiative have not been well-received by society. The role of CE practices is very crucial in fashion industry as it helps in lowering the environmental burden caused by the discarded fashion materials, which in turn help to achieve the sustainable development goals (SDG). This study aims to collect and evaluate the challenges restricting the preference for CE practices initiative in Indian fashion industry. Based on literature review and inputs from the fashion industry experts, the study identified twenty-one challenges, in seven categories (Industrial management, Labour, Material, Regulations, Knowledge, Collaboration, and Infrastructure). An integrated multi-criteria decision-making (MCDM) approach comprising fuzzy Decision-Making Trial and Evaluation Laboratory Model (DEMATEL), Analytical Network Process (ANP), and Technique for Order Performance by Similarity to Ideal Solution (TOPSIS) is used to evaluate the challenges. The outcome of the study identifies costly raw materials, absence of certifications, problem in collection and separation, weak technical know-how, and absence of shared vision as the top five challenges to CE practices in Indian fashion industry. Further, the revelation of the causal interrelationship among the challenges helps the industrial management in taking appropriate steps to avert the challenges.

PURPOSE: This study examines the interplay between stakeholder pressure (internal and external), circular economy (CE) practices, firm size, and their impact on the sustainability and economic performance of Small and Medium sized Enterprises. This research underscores firm size as a key moderator in the relationship between stakeholder pressures and CE adoption, aiming to provide a comprehensive understanding of this dynamic in SMEs. METHODOLOGY: Based on a cross-sectional survey of 124 SMEs in Estonia, Latvia, and Lithuania, with respondents primarily being owners and managers of firms, a three-step approach tested the proposed model for CE practices. First, Confirmatory Factor Analysis (CFA) was used to ensure that the observed variables represented latent constructs. Second, Ordinary Least Squares (OLS) and Weighted Least Squares (WLS) regression methods were used to control for factors influencing CE adoption. Finally, the interaction terms assessed the moderating role of firm size. FINDINGS: The research shows that firm size moderates these effects, with external stakeholder pressure significantly influencing CE adoption more than internal pressure. These finding underscores how firm size shapes SMEs’ responses to stakeholder pressure when adopting CE practices. IMPLICATIONS: This study provides empirical evidence that stakeholder pressure significantly influences SMEs in the Baltic States to adopt CE practices, thus impacting economic and sustainability performance. Smaller firms can enhance CE practices by strategically managing stakeholders, whereas larger SMEs should align with external stakeholder expectations for more effective CE initiatives, leading to improved organizational performance. ORIGINALITY AND VALUE: This study demonstrates how stakeholder pressures drive CE practices and impact organizational sustainability and economic performance. Firm size plays a crucial role as a moderator amplifying the influence of external stakeholder pressure on CE practices.

This paper identifies, through a literature review, how 53 circular economy (CE) practices are related to the capability approach (CA) proposed by Sen. The main goal was to identify how a virtuous cycle between CE and CA can be developed. Five instrumental freedoms (IF) were analysed: economic facilities, social opportunities, protective security, political freedoms, and transparency guarantees. These relationships were analysed in three flows: CE practices positively impacting IF, CE practices negatively impacting IF, and the feedback influence of IF on CE practices. The results show that 32 of the 53 practices previously mentioned have not yet been studied from the CA context, which indicates that there are several research opportunities. From the practices considered, 72 articles were analysed in the final sample. The results suggest that several CE practices are aligned with the CA, considering that all five IF were identified as positive outcomes of CE practices. However, in some contexts, certain practices can have negative outcomes, which indicates that CE, at least in some cases, may not be considered as sustainable, as it decreases IF and, therefore, the social aspect of sustainability. The results also highlight that there is a feedback from IF to CE, in such a way that investing in the expansion of IF can facilitate the development of CE practices. Therefore, this study concludes that CE is indeed a way to fully operationalize sustainable development.

Purpose This study attempts to assess how the textile and apparel (T&A) industry in Bangladesh is influenced by circular economy (CE) practices in terms of achieving the sustainable development goals (SDGs), with a focus on the moderating influence of competitive intensity (CI) and the mediating effect of I4.0 technologies. It bridges the knowledge gap about how CI and I4.0 technologies may drive CE practices to promote sustainability in the T&A industry. Design/methodology/approach In this study,partial least square-structural equation modeling (PLS-SEM) was used to examine survey data gathered from Bangladeshi T&A industry professionals, including manufacturing and management experts. Six hypotheses pertaining to direct, mediated and moderated impact were assessed using SmartPLS version 4 software. Findings The results show that attaining the targeted SDGs is significantly aided by CE practices that are pertinent to the T&A industry, such as reduction, repair, remanufacturing, and recycling. Five relevant I4.0 technologies like autonomous robots, cloud computing, cybersecurity, Internet of things and system integration can play a major mediating role in this interaction. Nevertheless, neither the association between CE practices and the SDGs nor the relationship between I4.0 and the SDGs was substantially moderated by CI. Originality/value To support the influence of CE practices on the T&A industry’s SDGs attainment, several outstanding research works have been executed. More precisely, very few research has been performed for Bangladeshi T&A industry. This study makes an effort to quantify the various effects of CE and I4.0 on SDGs that have been validated by CI for the first time.

This paper aims to explore the feasibility of implementing Circular Economy (CE) practices for produced water management in the oil and gas industry. The scope of this paper is to evaluate the circularity/technical aspects of 4 Circular Economy practices of produced water management: Disposal Wells, Pits/Evaporation Ponds, Wastewater Reclamation for Agricultural Purposes, and Industrial Symbiosis. CE is a concept that aims for the reduction of waste and utilization/consumption of valuable resources. This concept promotes re-use and recycling of products/materials. Also, it aims to extract maximum value, thus, this paper's goal is to cover some CE benefits such as "Reduced Waste"; and "Conservation of Resources". The overall approach involves a comprehensive review of CE practices for produced water management. The review will be conducted utilizing a systematic approach to identify circularity in disposal wells which involves injecting produced water into drilled disposal wells for active/inactive reservoir. Pits/Evaporation ponds where waste water exists can be re-utilized for well control, or steam generation for resource recovery. Wastewater reclamation for agricultural purposes involves using technologies to treat produced water and make it suitable for re-use into facilities. Industrial symbiosis which explores opportunities that can facilitate the re-use of produced water in other industries. Between the mentioned CE practices, each has its own advantages and disadvantages depending on the specific circumstances. The observations will highlight the opportunities and challenges associated with each CE practice. However, industrial symbiosis appears to be a promising approach because it can promote resource efficiency external use of water with or without initial treatment and reduce waste while also providing opportunities for other industries to benefit from produced water. The study suggests that amongst the 4 CE practices, it is wise to select them based on the feasibility to ensure an effective way to manage produced water from oil and gas operations. The industrial symbiosis practice involves using waste products from one industry as raw materials for another industry. For example, produced water from oil and gas operations can be re-used in other industries such as agriculture, construction dust suppression, and cooling process. However, adequate stakeholder engagement with financial incentives is necessary to ensure the success of this approach. Each CE practice can promote resource efficiency, reduce waste, and provide opportunities for other industries to benefit from produced water. Furthermore, this study will contribute to the other Circular Economy practice by providing a comprehensive evaluation as well. This paper presents novel information on the feasibility of implementing Circular Economy practices for produced water management in the oil and gas industry. The paper evaluates 4 CE practices that have not been comprehensively evaluated in previous studies together. The paper also provides recommendations for implementing these practices that can be of benefit to the petroleum industry.

ABSTRACTAs global sustainability challenges intensify, the transition to circular economy (CE) practices has become a critical strategy for businesses seeking to align with Sustainable Development Goals, particularly SDG 12. In emerging markets, understanding the key drivers behind successful CE adoption is vital for fostering sustainable growth. This study investigates how RET influence the adoption of CE practices in manufacturing firms across the MENA region, with a focus on the moderating roles of green innovation and governance policy. Drawing insights from the resource‐based view, dynamic capabilities, and stakeholder theories, the study constructs models linking returnee directors (RET) to CE adoption. Using a panel dataset of 5302 firm‐year observations, the study employs advanced econometric techniques, including MMQR and dynamic GMM modeling, while addressing endogeneity through IV‐2SLS, lagged effects, and PSM estimations. The findings reveal that RET significantly enhance CE practices across lower, middle and upper quantiles. Green innovation not only directly promotes CE adoption, but also amplify the positive influence of RET on CE practices. Additionally, robust governance policies strengthen the relationship between RET and CE practices, particularly at higher quantiles, underscoring the importance of institutional frameworks for fostering sustainability. This study highlights the pivotal role of RET in advancing CE and offers practical insights for policymakers and business leaders aiming to align with global sustainability goals. By integrating green innovation and effective governance mechanisms, this research provides a strategic roadmap for accelerating the transition to a CE in emerging markets.

A significant proportion of waste generated by the fashion industry is either landfilled or incinerated, primarily due to the high cost and complexity of collecting and separating mixed textile materials. While research in textile recycling often emphasizes post-consumer waste, less attention is given to pre-consumer waste, particularly cutting surpluses generated during apparel manufacturing—a labour-intensive sector with low automation and operational inefficiencies. This study addresses this gap by presenting a case study on the implementation of an automated system for collecting, transporting, sorting, and storing textile surpluses in an apparel manufacturing environment. The research aims to identify the barriers, benefits, and sustainability impact of such automation. Using both qualitative and quantitative data, the system is evaluated through key performance indicators including time reduction, ergonomic improvement, and process reliability. Results suggest that automation enhances intralogistics, reduces non-value-added labour, and enables better utilization of human resources. This case study offers a practical framework for apparel manufacturers to assess the potential of automating textile-waste handling, helping to justify such investments based on labour use, process variability, and environmental benefits. The study contributes to the broader discourse on sustainable manufacturing and supports the apparel industry’s shift toward digital transformation and circular economy practices.

Despite growing interest in circular economy (CE) practices, the mechanisms for improving financial performance in micro and small enterprises (MSEs) remain underexplored, especially in developing economies. This study examines how CE practices enhance financial performance, both directly and indirectly, through organizational agility and operational efficiency. Additionally, the adoption of digital technology presents itself as a moderator in these relationships. Time-lagged data collection involved 451 Indonesian MSEs in the processing, fashion, and culinary sectors. Data were analyzed using PLS-SEM using SMART PLS 4.0. The findings reveal that CE practices have a positive effect on organizational agility, operational efficiency, and financial performance. Organizational agility and operational efficiency have been confirmed as key determinants of financial performance and partially mediate the relationship between CE practices and financial performance. Moreover, adopting digital technology strengthens the effects of CE practices on agility and operational efficiency. However, this did not directly moderate the relationship between CE practices and financial performance. This study makes three key contributions to the literature on the CE. First, it reveals that CE practices are a significant driver of organizational agility in MSEs. Second, this study empirically validates the parallel mediating roles of organizational agility and operational efficiency in translating CE practices into enhanced financial performance. Third, the findings highlight how MSEs in developing countries have successfully used digital tools to implement circular practices even with limited resources.

Industrial symbiosis, a promising approach for sustainable industrial practices, has garnered attention in recent days for its ability to enhance resource efficiency, minimize waste, and preserve the environment through collaborative exchanges among industries. In emerging economies like Bangladesh, integrating industrial symbiosis in the manufacturing industries offers the potential to balance economic growth with environmental sustainability. However, this integration encounters various barriers that complicate the implementation. Despite research on industrial symbiosis in robust economies, studies on emerging and developed economies are still scarce. To date, no research has yet investigated the barriers hindering the performance of industrial symbiosis in the Bangladeshi apparel manufacturing sector. To address this gap, this study integrates the Bayes theorem and the Best-Worst Method to identify and prioritize barriers to the Bangladeshi apparel manufacturing sector. From extensive literature reviews and expert validation, 17 barriers were identified. Findings reveal the “lack of technology and infrastructure readiness” as the most significant barrier, followed by “lack of inter-company cooperation” and “lack of management support”. Conquering these barriers empowers emerging economies to fortify the apparel manufacturing sector's resilience, resource efficiency, and environmental performance while fostering sustainable development via circular economy practices. This study is expected to guide policymakers and stakeholders in crafting targeted strategies for promoting steady growth and sustainable development in the apparel manufacturing sector of emerging economies like Bangladesh.

Purpose The construction industry faces significant challenges in managing waste and resource inefficiency, contributing to environmental degradation and unsustainable practices. Despite the potential of circular economy (CE) practices to address these issues, there is limited understanding and inadequate policy support for their effective implementation. This study investigates the perspectives of policymakers on achieving CE in the Nigerian construction industry. Specifically, this study examines policymakers’ understanding of CE, key influencing policies, the challenges encountered in implementing CE practices and how policies can support the transition to CE. Design/methodology/approach This study adopts a qualitative approach to explore the perspectives of policymakers towards achieving CE in the Nigerian construction industry. About 50 participants were purposively selected to participate in this study to provide comprehensive data for the study. Saturation was attained on the 34th participants. The data were analysed using thematic analysis to identify key themes and insights. Findings This study identified significant gaps and challenges hindering policymakers' effective implementation of CE practices. The challenges include financial constraints, resistance to change, inadequate regulatory frameworks, lack of infrastructure, skill gaps and weak enforcement mechanisms. Recommendations for improvement include financial incentives, updated building codes, enhanced enforcement, mandatory education and training programmes and increased collaboration between government, industry and academia. A conceptual framework was developed to promote the implementation of CE in the construction industry. Originality/value This study is the first to examine the perspectives of policymakers on CE in the Nigerian construction industry, offering unique insights and practical recommendations. The conceptual framework adds a structured approach to implementing CE practices, contributing to the limited research on CE in developing countries and providing a robust foundation for future studies to expand the scope and employ quantitative methods to measure the impact of CE practices.

Purpose The benefits of circular economy (CE) practices to firms cannot be overemphasised in business environments and have thus attracted research attention lately. Nevertheless, there exist considerable unexplored gaps regarding how green human resource management (GHRM) and organisational citizenship behaviour (OCB) partially or jointly influence the relationship between CE practices and firm performance (FP) in developing economies. Design/methodology/approach Using planned behaviour and natural resource-based view (NRBV) theories, this study explores the roles of GHRM and OCB in the relationship between CE practices and FP [i.e. environmental performance (EP) and financial performance (FnP)]. The study employed a quantitative (survey) approach and specifically using partial least squares-structural equation modelling (PLS-SEM) technique to analyse data randomly collected from 196 manufacturing firms in Ghana. Findings The study found that GHRM moderates the relationships between CE practices and OCB. Additionally, OCB mediates the relationship between CE practices and EP but does not mediate the relationship between CE practices and FnP. Originality/value The study provides empirical evidence and highlights the significance of GRHM and OCB in driving successful CE initiatives in organisations, leading to better FP. The findings of this study provide useful insights to support green operations in firms and policy development, particularly in developing economy environments.

Purpose:The primary aim of this paper is to identify the specificity and level of implementation of circular economy (CE) practices in small and medium-sized enterprises (SMEs) in Poland.Design/methodology/approach: To address the research questions, a comparative analysis was conducted using statistical data from the Flash Eurobarometer surveys titled 'SMEs, Green Markets, and Resource Efficiency'.These surveys capture the opinions of SMEs on practices for enhancing resource efficiency and transitioning to CE. Findings: The research results indicate that the level of implementation of CE practices by SMEs in Poland is low.This conclusion is supported by the number of CE practices reported by SMEs and the level of CE investment funds incurred in previous years.The most frequently implemented CE practices aim at achieving energy savings, material savings, and waste reduction.The major barrier for SMEs in Poland implementing CE practices is the complexity of administrative and legal procedures.It was also revealed that increased access to external funding sources, as well as advice on financing options and financial planning for CE transition investments, could significantly enhance the interest of SMEs in Poland in adopting CE practices.Originality/value: This paper contributes to the existing literature by presenting the results of an analysis on the implementation level and economic effects of CE practices, barriers to adoption, and resources intended to support CE implementation in SMEs in Poland.The findings are directed towards policymakers, authorities, managers, and practitioners involved in the implementation of CE practices.

Summary This paper identifies the extent to which circular economy (CE) practices are relevant for the implementation of the Sustainable Development Goals (SDGs). The results of a literature review and a matching exercise to determine the relationship between CE practices and SDG targets show that CE practices, potentially, can contribute directly to achieving a significant number of SDG targets. The strongest relationships exist between CE practices and the targets of SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production), and SDG 15 (Life on Land). The paper also explores synergies that can be created through CE practices among several of the SDG targets. Furthermore, it identifies several potential trade‐offs between targets for decent work, safe working environments, human health and current CE practices relating to recycling of municipal waste, e‐waste and wastewater, and provides suggestions how these can be overcome. The paper concludes that CE practices can be applied as a “toolbox” and specific implementation approaches for achieving a sizeable number of SDG targets. Further empirical research is necessary to determine which specific types of partnerships and means of implementation are required to apply CE practices in the SDG context.