Barriers to the adoption of circular economy in construction industry: a combined structural and causal analysis

Purpose The primary aim of this study is to identify the main barriers to the adoption of the circular economy (CE) in the construction industry (CI). This investigation seeks to understand the complex contextual relationship among barriers that impede the construction of circularity. Design/methodology/approach The study begins with a literature review of relevant studies to identify the main barriers to CE adoption in CI. It then employs an integrated approach using total interpretive structural modelling (TISM) to investigate the interrelationships among these barriers. Additionally, the decision-making trial and evaluation laboratory (DEMATEL) method is used to classify those barriers into cause-and-effect groups. Findings Ten critical barriers were identified, with knowledge barriers (B1) and regulatory barriers (B7) being the most influential throughout the methods. Organisational barriers (B2) and cultural barriers (B5) were also found to play a mediating role in shaping the interdependencies among barriers. Originality/value This study contributes to the CE literature by providing theoretical models for analysing multi-level barrier interdependencies in CI. The integration of TISM and DEMATEL enables more substantial and implementable insights than individual method studies. Policy and industry implications are outlined, including targeted regulatory interventions, procurement strategies based on CE principles and efforts to build capacity designed for the circumstances of developing nations.