Barriers to IoT-enabled circular economy adoption: a strategic decision-making approach

Purpose This study explores barriers to IoT adoption in the circular economy (CE). While IoT enhances resource efficiency and automation, its implementation faces challenges. Existing research overlooks specific IoT-related barriers and their interconnections within CE. This study identifies key obstacles and examines their relationships using Fuzzy DEMATEL, helping managers make informed decisions under uncertainty to support effective CE adoption. Design/methodology/approach Using Fuzzy DEMATEL, expert opinions on ten barriers were collected through pairwise comparisons to assess their interrelationships. The method quantifies both direct and indirect influences, distinguishing causal and effect barriers. This analytical approach aids managers in understanding complex barrier interactions to improve strategic decision-making in IoT-enabled CE implementations. Findings Key barriers include high costs, privacy concerns, data-access issues, and resistance to change. These affect scalability, interoperability, and connectivity challenges. Addressing these will ease IoT integration. The study offers actionable insights and a structured framework to guide managers and policymakers in prioritizing barriers and designing targeted strategies for smoother IoT-driven circular economy transitions. Originality/value This study uniquely focuses on IoT adoption barriers in CE, identifying causal relationships with Fuzzy DEMATEL to prioritize interventions. Unlike general Industry 4.0 studies, it highlights IoT-specific challenges and their interdependencies, supporting managers and researchers in navigating complexity and uncertainty. The findings provide a valuable foundation for accelerating sustainable, IoT-driven circular economy adoption.