SWOT-based assessment of capacity building strategies for circular economy implementation in construction SMES

Circular Economy (CE) concept is imperative for achieving sustainability in the construction industry, where the contributions of Small and Medium-sized Enterprises (SMEs) are pivotal. However, SMEs frequently encounter substantial challenges that impede their effective participation in CE practices. These challenges necessitate focused attention and targeted capacity-building initiatives. Therefore, the aim of this study is to investigate the capacity building strategies through a SWOT based assessment for CE implementation in construction SMEs. Through employing a pragmatic philosophical approach, the study adopted a mixed research choice consisting of a comprehensive literature review, semi-structured expert interviews and a questionnaire survey among experts in the construction industry, selected through purposive sampling. Collected qualitative and quantitative data were analysed through NVivo 12 and random forest which is a machine learning algorithm for regression tasks respectively. The findings reveal ten key strengths, with supply-chain collaboration being the most significant, and fifteen weaknesses, led by limited capital for CE investments. Nine opportunities were identified, notably the increasing client demand for sustainability being the most significant, while the main threat among the eight identified is the lack of supportive taxation policies. To address these factors, the study proposes targeted capacity-building strategies at three levels including: training and education at the individual level, research and development at the organisational level, and partnerships with academic institutions at the environmental level. This study offers valuable theoretical and practical insights into enhancing the capabilities of construction SMEs towards CE implementation.