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Australian SME's experience in transitioning to circular economy

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  • Sohal, Amrik
  • De Vass, Tharaka

Abstract

Small and medium-sized enterprises (SMEs) are becoming increasingly aware of the values of the Circular Economy (CE) as a sustainable alternative to the traditional linear economic model. However, the academic discussion thus far mostly clusters around conceptualisation and idiosyncratic cases challenging to replicate and generalise. Based on 16 case studies of Australian SMEs' success stories, this paper narrates their vision, alignment with 3R concepts, and critical success factors through transitioning to Circular Economy. Leaders' vision of embracing CE, rather than directly seeking financial outcomes, has led to their success. While aligning towards a singular aspect of 3R (reduce, reuse, or recycle), SMEs demonstrate an attempt to blend all 3Rs into their frugal business model. The leadership's passion and finding a practical solution are the essential internal critical factors for SMEs successfully implementing CE. Collaboration is the key external factor, suggesting persuasive public, private, and academic partnerships to address CE challenges.

Suggested Citation

  • Sohal, Amrik & De Vass, Tharaka, 2022. "Australian SME's experience in transitioning to circular economy," Journal of Business Research, Elsevier, vol. 142(C), pages 594-604.
    • Handle: RePEc:eee:jbrese:v:142:y:2022:i:c:p:594-604
    DOI: 10.1016/j.jbusres.2021.12.070
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    3. Saman Davari & Meisam Jaberi & Adam Yousfi & Erik Poirier, 2023. "A Traceability Framework to Enable Circularity in the Built Environment," Sustainability, MDPI, vol. 15(10), pages 1-23, May.
    4. Lukas Alexander Benz, 2022. "Critical Success Factors for Circular Business Model Innovation from the Perspective of the Sustainable Development Goals," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    5. Akvan Gajanayake & Oanh Thi‐Kieu Ho & Usha Iyer‐Raniga, 2024. "Motivations and drivers for adopting sustainability and circular business strategies in businesses in Victoria," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 169-179, January.
    6. Zeynep Ozsut Bogar & Askiner Gungor, 2023. "Forecasting Waste Mobile Phone (WMP) Quantity and Evaluating the Potential Contribution to the Circular Economy: A Case Study of Turkey," Sustainability, MDPI, vol. 15(4), pages 1-38, February.

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