Circular economy in the manufacturing sector: benefits, opportunities and barriers

Abstract

Purpose

In recent years, circular economy (CE) has come to prominence as an alternative to the classic approach of “make-use-dispose”. How companies can exploit the opportunities of CE to position themselves better are not well articulated in the literature. The purpose of this paper, therefore, is to identify the barriers and opportunities of CE in the manufacturing sector through a socio-political, economic, legal and environmental perspective.

Design/methodology/approach

The study adopts a positivist approach, which is deductive in nature. A survey questionnaire was designed and distributed to manufacturing companies operating in the UK and EU. The study used FAME database and social networking platform LinkedIn to identify manufacturing companies. More than 200+ companies were approached for this study and data collection lasted over two months.

Findings

The study provides a comprehensive review of the CE literature and identifies a number of barriers and opportunities to CE implementation from a socio-political, economic, legal and environmental perspective. The findings highlight key barriers, opportunities and benefits of CE for the manufacturing industries operating in the UK and EU.

Research limitations/implications

The findings are limited to 63 responses from the survey questionnaire distributed to manufacturing companies in the UK and EU. The present study aims to equip manufacturers with necessary understanding of the key opportunities and barriers to address the challenges encountered during the implementation of CE.

Originality/value

This study adds to the limited empirical literature on CE barriers and opportunities to manufacturing organisations operating in the UK and EU. The paper also identifies barriers and opportunities of CE from a socio-political, economic, legal and environmental lens.

Citation

Kumar, V., Sezersan, I., Garza-Reyes, J.A., Gonzalez, E.D.R.S. and AL-Shboul, M.A. (2019), "Circular economy in the manufacturing sector: benefits, opportunities and barriers", Management Decision, Vol. 57 No. 4, pp. 1067-1086. https://doi.org/10.1108/MD-09-2018-1070