Circular economy in Southeast Asia: insights from an exploratory analysis of 75 business cases

This research investigated the divergent interpretations of Circular Economy (CE) among Southeast Asian (SEA) businesses and with policy and academic communities. Using a grounded theory approach, the research developed a convergent, ambitious and actionable CE meta-idea, and analysed elements of CE-relevant actions implemented by SEA businesses. The resultant CE meta-idea is articulated through five guiding principles which set ambition for CE implementation by business, yet do not constitute a new definition. Compared to prior CE operationalizations, this reaffirms CE as an umbrella concept, de-emphasizes specific CE solutions in favour of focusing on resource innovation strategies, and adds responsible business conduct as critical CE success factor. 75 CE-relevant business cases were purposely sampled across Cambodia, Indonesia, Philippines, Thailand and Vietnam, analysed using secondary industry data and company interviews, and interpreted using the study's CE meta-idea. The documented CE practices were driven by cost savings, new product and market opportunities, anticipation of likely product declines and/or eagerness to be informed and involved. Success was found to hinge on sense of company purpose, innovation-readiness and entrepreneurialism. Collectively the cases demonstrate diversity of actual CE solutions and wide applicability across business sectors, sizes, ownership structures and geographies. To business it illustrates that CE offers prospect for competitive opportunity and strategic advantage. To policy makers it highlights the need for innovation and economic policy for CE, as complement to environmental regulation and waste management strategy. Further research may focus on investigations into the innovation attributes of CE solutions and the requisite firm-level innovation competencies and enabling ecosystems.