Circular Economy Adoption in Supply Chains: Drivers, Barriers, and Performance Outcomes

The present study aims to conduct a literature synthesis to understand the factors, challenges, and outcomes of adopting circular economy practices in supply chains. Circular supply chains have been conceptualized as regenerative systems that incorporate reuse, repair, remanufacturing, recycling, and other forms of closed-loop material flows into the supply chain's fundamental operations. Based on the literature review, the drivers of adopting circular economy practices in supply chains have been identified as regulatory push factors, market pull factors, innovation push factors, corporate social responsibility, and cost reduction. On the other hand, challenges to the adoption of circular economy practices in supply chains include a lack of awareness, financial constraints, limited infrastructure, supply chain complexity, and the need to manage change, especially in small and medium-sized enterprises. The present study also aims to explore the outcomes of adopting circular economy practices in supply chains, including effects on resource productivity, greenhouse gas reduction, stakeholder engagement, and competitiveness. A comparative analysis of linear and circular supply chain systems accounts for the dynamic nature of flow structures in linear supply chains. A brief overview of existing circular supply chain systems in America, Asia, and Africa has been provided to understand variations in policy support, infrastructure, and industry development across regions.