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Is It Possible to Change from a Linear to a Circular Economy? An Overview of Opportunities and Barriers for European Small and Medium-Sized Enterprise Companies

Author

Listed:
  • Concepción Garcés-Ayerbe

    (Department of Management, University of Zaragoza, 50005 Zaragoza, Spain)

  • Pilar Rivera-Torres

    (Department of Marketing, University of Zaragoza, 50005 Zaragoza, Spain)

  • Inés Suárez-Perales

    (Department of Management, University of Zaragoza, 50005 Zaragoza, Spain)

  • Dante I. Leyva-de la Hiz

    (Montpellier Business School, 34080 Montpellier, France)

Abstract

The Circular Economy is a paradigm shift attempting to replace the end-of-life concept with reducing, reusing, recycling and recovering materials and to slow down, close and narrow material and power loops. This concept is much discussed in the academic literature, but limited progress has been accomplished so far regarding its empirical analysis. The objective of this work is to study circular economy practices and analyze in depth the circular economy behavior in European firms. We find that firms’ circular economy behavior is a gradual process where measures are implemented gradually, starting with activities involving control measures and ending with putting preventive practices in place. We discovered also that the most proactive companies in implementing circular economy measures generally come across certain common barriers such as administrative processes, regulations and a lack of human resources to perform these practices, while firms that have not implemented circular economy measures view financing, investment and cost–benefit barriers as the most significant. Significant efforts need to be undertaken by firms to accomplished circular economy. Also circular economy regulation should be improved to make it easier for companies to implement strategies that will make them more sustainable.

Suggested Citation

  • Concepción Garcés-Ayerbe & Pilar Rivera-Torres & Inés Suárez-Perales & Dante I. Leyva-de la Hiz, 2019. "Is It Possible to Change from a Linear to a Circular Economy? An Overview of Opportunities and Barriers for European Small and Medium-Sized Enterprise Companies," IJERPH, MDPI, vol. 16(5), pages 1-15, March.
    • Handle: RePEc:gam:jijerp:v:16:y:2019:i:5:p:851-:d:212227
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    4. Marco-Lajara, B. & Úbeda-García, M. & Zaragoza-Sáez, P. & Manresa-Marhuenda, E., 2023. "The impact of international experience on firm economic performance. The double mediating effect of green knowledge acquisition & eco-innovation," Journal of Business Research, Elsevier, vol. 157(C).
    5. Zhejun Min & Sukanlaya Sawang & Robbert A. Kivits, 2021. "Proposing Circular Economy Ecosystem for Chinese SMEs: A Systematic Review," IJERPH, MDPI, vol. 18(5), pages 1-13, March.
    6. Krishanu Roy & Aflah Alamsah Dani & Vince Say & Zhiyuan Fang & James B. P. Lim, 2022. "The Circular Economy of Steel Roofing and Cladding and Its Environmental Impacts—A Case Study for New Zealand," Sustainability, MDPI, vol. 14(24), pages 1-14, December.
    7. Iordanis Eleftheriadis & Evgenia Anagnostopoulou, 2024. "Developing a Tool for Calculating the Carbon Footprint in SMEs," Sustainability, MDPI, vol. 16(5), pages 1-23, February.
    8. Bhavesh Kumar & Love Kumar & Avinash Kumar & Ramna Kumari & Uroosa Tagar & Claudio Sassanelli, 2024. "Green finance in circular economy: a literature review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 16419-16459, July.
    9. Raja Adzrin Raja Ahmad & Syamsyul Samsudin & Nurul Azlin Azmi & Nurul Huda Md Yatim, 2024. "Assessing and Modelling Domestic Water Consumption Behavior," Information Management and Business Review, AMH International, vol. 16(2), pages 151-162.
    10. Carina Pasqualotto & Daniela Callegaro-De-Menezes & Cornelius Stephanus Lodewyk Schutte, 2023. "An Overview and Categorization of the Drivers and Barriers to the Adoption of the Circular Economy: A Systematic Literature Review," Sustainability, MDPI, vol. 15(13), pages 1-24, July.
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