Mapping resource and capabilities coordination barriers in circular supply chain implementation in manufacturing small and medium enterprises

Abstract

Circular supply chains (CSC) address sustainable consumption and production issues associated with linear economy such as excessive reliance on virgin resources, inadequate waste management, and climate change. For Manufacturing small and medium enterprises (SMEs) in developing economies which represent over half of all SMEs globally, developing resource orchestration competence (structuring, bundling, and leveraging) is essential for effective coordination of resources and capabilities to implement CSC. However, many SMEs face significant barriers in the development of this competence. This research aims to identify and prioritize these barriers to enhance resource and capability coordination in the industry. Using the Delphi method and hybrid Best Worst Method (BWM) - fuzzy Decision-Making Trial and Evaluation Laboratory (fuzzy DEMATEL) techniques, this research analyzed the causal relationships between barriers across various dimensions and sub-dimensions of resource orchestration theory. The findings identified key barriers within the structure (accumulation and divestment sub-dimension), bundle (enrichment sub-dimension), and leverage (deployment sub-dimension) have high cause-effect values. These key barriers are crucial for addressing many other relevant barriers affecting CSC implementation in both the medium and long term. This research contributes to the limited research on both resource and capability coordination barriers in SMEs in developing economies and resource orchestration theory adoption as a theoretical lens in CSC implementation.