A strategic framework for sustainable quality management in the waste textile recycling industry within the context of the circular economy

In the era of the circular economy (CE), the pursuit of sustainability in the textile recycling industry offers organizations a significant competitive edge in the global competitive marketplace. Sustainable quality management practices (SQMP) have long been focal point of interest among companies. However, there has been limited research on achieving CE objectives in the textile sector, particularly within emerging economies like China. A gap remains in exploring SQMP within the context of CE goals, specifically in providing a comprehensive evaluation of the challenges to achieving sustainable operational practices. This study aims to integrate theories from quality management (QM) and the resource‐based view with corporate environmental objectives in the waste textile recycling industry, to identify key challenges in implementing SQMP. A robust analytic approach combining the integrated cloud model, blind number theory, Decision‐Making Trial and Evaluation Laboratory (DEMATEL), and interpretative structure modeling (ISM) was used to analyze expert scoring results and to establish contextual and hierarchical relationships between the identified barriers, leading to the development of a framework model. The results show that workforce diversity has the highest correlation with other barriers and is a critical trigger point for integrating SQMP into organizations. These insights will assist practitioners in prioritizing strategic measures to foster sustainable QM. Furthermore, this investigation holds important policy implications for stakeholders committed to advancing sustainable CE through the recycling and utilization of waste textiles.