In the past decade, industries have undergone significant transformations driven by digitalization and sustainable development, particularly through the integration of Circular Economy (CE) and Industry 4.0 (I4.0), known as Smart Circular Economy (SCE). This study investigates the adoption of SCE in manufacturing firms by identifying and validating fourteen key enablers through a literature review and expert opinions. The structural relationships among these enablers are explored using Interpretive Structural Modeling (ISM). Further, the fuzzy-MICMAC analysis categorizes them into four clusters. The results reveal that ‘technical capability,’ ‘top management involvement,’ and ‘supportive policies' are the prime enablers for SCE implementation. The developed structural model of the SCE enablers helps the practitioners by focusing on developing supportive policies for SCE, enhancing technical capabilities and involving the top management in SCE transformation. The findings also suggest allocating a suitable budget for adopting SCE and developing the infrastructure for process digitalization in the manufacturing firm. Further, this study also act as a reference point for organizations to transform the linear economy into SCE to face society's environmental challenges.
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