Navigating the Green Transition: Drivers, Barriers, and Policy Implications for Circular Economy Adoption Among Logistics SMEs in an Emerging Economy

The global shift toward a Circular Economy (CE) presents both significant challenges and opportunities for small and medium-sized enterprises (SMEs) in the logistics sector of emerging economies. This study aims to empirically identify and analyze the key drivers and barriers to the adoption of CE practices among logistics SMEs in Vietnam. Drawing on an integrated theoretical framework that combines the Technology—Organization—Environment (TOE) framework, the Resource-Based View (RBV), and Institutional Theory, a questionnaire survey was conducted with a sample of 160 logistics SMEs. Data were analyzed using multiple linear regression to test the proposed hypotheses. The findings reveal that external environmental factors exert the strongest influence, with supply chain partner support (β = 0.355) and competitive pressure (β = 0.331) emerging as the most significant predictors. Leadership commitment (β = 0.237) and regulatory pressure (β = 0.164) also have positive and statistically significant effects. Notably, the study found no significant impact from internal factors such as financial capacity or cognitive factors, suggesting that ecosystem pressures may play a dominant role for SMEs. Based on the findings, the paper offers valuable practical implications for both managers and policymakers.