A Natural Resource‐Based View of Circular Economy Practices in the Pharmaceutical Industry

ABSTRACT Pharmaceutical industry is facing escalating environmental sustainability issues including gaseous emissions, waste generation, and excessive consumption of energy and non‐renewable materials. Nevertheless, the adoption of sustainable business models such as the circular economy ( CE ) is still in its infancy in this sector due to complex manufacturing and supply chain operations. Further, a scarcity of empirical research in this domain calls for an in‐depth investigation into CE implementation in the pharmaceutical industry. Accordingly, this study aims to examine the CE practices in the pharmaceutical industry for reducing hazardous waste, improving environmental protection, conserving resources, and ensuring responsible and safe disposal of medicines. Using a multiple case study approach, 18 semi‐structured interviews were conducted with senior executives and corporate managers in four large pharmaceutical companies in Pakistan. Drawing on the natural resource‐based view (NRBV), the findings revealed green procurement, sustainable production, reverse logistics, sustainable distribution, and digitalization as significant CE practices in the pharmaceutical supply chain management. This study contributes to the existing body of knowledge by developing a holistic model of CE enablers linking with the NRBV framework. The findings can guide practitioners in deploying CE practices in the complex supply chain operations of the pharmaceutical industry and improving sustainability which can strengthen their organization's pollution prevention, product stewardship, and sustainable development strategic capabilities. Further, the study findings can assist policymakers in developing stakeholder‐specific policies and frameworks to promote CE adoption in the pharmaceutical industry.