Towards a Maturity Model for Empowering Manufacturing SMEs in their Transition towards Circularity

Abstract The transition towards a Circular Economy (CE) has become increasingly important for manufacturing enterprises seeking to improve resource efficiency and reduce waste generation. Production systems are central to this transition, as they govern material transformation, resource and energy utilization, and the management of waste and emissions throughout the production phase. However, transitioning towards circular production systems is particularly challenging for small and medium-sized enterprises (SMEs), which often face limitations in resources compared with large enterprises (LEs). A review of existing CE maturity models showed that, although several models offer useful guidance for manufacturing enterprises, most lack a clear focus on production systems, particularly their inputs and outputs, and do not sufficiently address the specific challenges and enablers faced by manufacturing SMEs. To address these gaps, this paper proposes an initial CE maturity model tailored to manufacturing SMEs and focused on production-system inputs and outputs. Developed through a structured process combining a targeted literature review with empirical insights from previous research, the model includes dimensions related to production systems: water, energy, materials, waste, products, and emissions; SME-specific challenges and enablers: collaboration, capital, and time; and cross-cutting dimensions: people’s skills, information, technology, tool, and machine. The model introduces five maturity levels ranging from Linearity to Full Circularity, providing manufacturing SMEs with a structured pathway to assess their as-is state and prioritize improvement actions. Future work will involve developing Key Performance Indicators (KPIs), creating a step-by-step implementation guideline, and conducting empirical validation to refine the model’s usability and strengthen its practical relevance.