Barriers to effective circular supply chain management in a developing country context

Abstract

Circular supply chain emphasizes surge in application of reuse, recycling and remanufacturing and thereby promotes the transformation of manufacturing characteristics from linear (‘take-produce-utilize-dump’) to circular model of flow of products, by-products and waste. Supply chains of manufacturing industries have become global in last few decades. Products manufactured in developing nations like India and China are being sent to developed nations for consumption in higher volumes. Developed nations have the regulatory policies, technological knowhow and modern infrastructure to adopt circular supply chain model. Their counterpart is trailing in these aspects. In literature, limited research work has been performed on identifying challenges of implementing circular supply chain management in developing nations and their contextual association. In this article, based on thorough literature review and feedback received from experts, sixteen important barriers were identified to circular supply chain management adoption in Indian context. The listed barriers were then analysed using an integrated Interpretive Structural Modelling - MICMAC approach. This study attempts to identify the contextual interactions among identified barriers and to examine their hierarchical levels in effective adoption and implementation of circular supply chain management. The findings of this research will contribute in transforming supply chains in terms of bringing economic prosperity, addressing global warming issues and generating numerous employment opportunities. Finally, some crucial policy measures and recommendations are proposed to assist managers and government bodies to adopt and manage the concepts of circular supply chains effectively in Indian context.