Unveiling the circular procurement Nexus: A hierarchical examination of barriers, interrelationships, and strategic insights

Abstract

The integration of circularity into various functions, including procurement, is essential and is embraced by organizations for sustainable and profitable operations. Existing studies have explored circular procurement (CP) and its influencing factors. However, existing literature calls for a deeper examination of these factors to provide a smooth implementation guide for practitioners and to foster a comprehensive understanding of cause-and-effect relationships for future research by scholars. As a result, this study aims to investigate the interrelationship between CP barriers. Firstly, this study explores barriers through a thorough review of relevant literature with input from academic and industrial experts. Utilizing a classical triple-level framework, the work identifies and categorizes 21 barriers. Secondly, the study employs interpretive structural modeling (ISM) to examine the contextual relationships among the barriers. Thirdly, these barriers are classified into different categories using the MICMAC technique, based on their driving and dependence power. The research findings develop a hierarchical model of barriers, offering insights into which barriers are the most crucial and need immediate attention and how different barriers could influence each other. The study's unique contributions lie in its identification of hierarchical relationships between barriers and its categorization (independent, linkage, and dependent), contributing to tailored strategies for effective CP implementation.