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Analyzing the causal dynamics of circular-economy drivers in SMES using interpretive structural modeling

Author

Listed:
  • Oliveira, Pedro S.P.C.
  • Ferreira, Fernando A.F.
  • Dabić, Marina
  • Ferreira, João J.M.
  • Ferreira, Neuza C.M.Q.F.

Abstract

The circular economy has emerged as a crucial way for companies to achieve their sustainability goals. Numerous businesses, especially small and medium-sized enterprises (SMEs), are integrating circular-economy projects into their operations. However, this undertaking presents multiple challenges as many managers must grapple with constraints in resources and expertise. This study’s primary objective is to develop a process-oriented decision-making system designed to deal with complex circular-economy scenarios. The proposed analysis system can help SMEs identify the driving forces behind circular-economy principles and evaluate the intricate connections between these determinants, using a unique combination of multiple criteria decision analysis methods (i.e., cognitive mapping, and interpretive structural modeling). Collaborative sessions involving circular-economy experts were instrumental in refining the analysis system, and in-depth discussions with other specialists from the International Labor Organization further enriched this decision-support system. The findings include that circular-economy drivers can be grouped into five clusters: products, processes, policies/regulations, attitudes/behaviors, and communication/awareness. This structured breakdown provides SMEs with the tools to comprehend and address the pivotal factors that shape circular-economy initiatives. This pioneering study thus produced a comprehensive decision-making model attuned to the intricacies of the circular economy while highlighting the benefits of collaborative endeavors involving industry experts and global decision makers.

Suggested Citation

  • Oliveira, Pedro S.P.C. & Ferreira, Fernando A.F. & Dabić, Marina & Ferreira, João J.M. & Ferreira, Neuza C.M.Q.F., 2024. "Analyzing the causal dynamics of circular-economy drivers in SMES using interpretive structural modeling," Energy Economics, Elsevier, vol. 138(C).
    • Handle: RePEc:eee:eneeco:v:138:y:2024:i:c:s0140988324005504
    DOI: 10.1016/j.eneco.2024.107842
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    References listed on IDEAS

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    More about this item

    Keywords

    Circular economy; Cognitive mapping; Interpretive structural modeling (ISM); Small and medium-sized enterprises (SMEs); Sustainability;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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