Integrating Circular Economy and Lean Management: A Strategic Framework for Sustainable Business Transformation

ABSTRACT This study investigates the integration of circular economy (CE) and lean management (LM) as a strategic approach for enhancing corporate efficiency and sustainability. While CE emphasizes resource circularity, LM focuses on waste elimination and value maximization in production processes. Through the analysis of multiple cross‐sector case studies in industries such as automotive, consumer goods, and technology, this research identifies the operational, environmental, and financial impacts of integrating these practices. Notably, companies like Toyota and Renault achieved cost reductions of up to 30% and a significant decrease in carbon emissions through the combined application of CE and LM principles. However, challenges such as organizational resistance, insufficient reverse logistics infrastructure, and skill gaps persist. This article proposes a theoretical framework to support companies in successfully implementing CE‐LM practices. This framework emphasizes process mapping, circularity opportunities, lean principles adoption, and reverse logistics development, underpinned by continuous employee engagement and technological innovation. The findings highlight that integrating CE and LM not only enhances operational efficiency but also strengthens competitive advantage by aligning with consumer and regulatory demands for sustainable practices. The study gives actionable recommendations for managers and policymakers, emphasizing the transformative potential of CE‐LM synergy for advancing sustainable business models in diverse industrial contexts.