Implementing circular economy practices in Indian SMEs: analysis of challenges with case study

The adoption of circular economy (CE) and its practices is still in a nascent stage in Indian SMEs, irrespective of various initiatives, policies, and transnational strategic partnerships. Existing research has outlined the benefits of CE adoption in Indian SMEs to achieve sustainable business performance in emerging markets. This paper has identified the challenges of CE in Indian SMEs. The fuzzy DEMATEL approach is used to prioritise the challenges of the CE in Indian SMEs. The robustness of model and expert's biases is checked by sensitivity analysis. The analysis shows that the lack of legislation and regulation, systemic nature of CE, multi and interdisciplinary nature of CE are the top causing challenges. Similarly, the lack of affordable waste management techniques, non-availability of reverse logistics facilities and lack of in-house technological capabilities on CE are top effect challenges. Based on classification and prioritisation from fuzzy DEMATEL techniques, the organisations can form strategies and make a transformation toward circular practices. Observations from the case study state that internal technological facilities and training can also help in the journey of implementing CE practices. To get a practical insight into CE implementation, we have conducted a case study on windshield manufacturing organisation.