Unveiling the drivers and barriers of circular economy implementation in developing countries’ SMEs: a DEMATEL-based ANP approach

Purpose This study aims to unveil the drivers and barriers by exploring the interrelationship and priority level to successfully implement a circular economy concept in small and medium enterprises (SMEs), concentrated in the food and beverage sector in developing countries. Design/methodology/approach To achieve the purpose of this study, the hybrid decision-making trial and evaluation laboratory (DEMATEL)-based analytic network process (ANP) method assesses the priorities and interdependence of the validated drivers and barriers. The drivers and barriers were collected through an in-depth literature review and assessed by experts representing government, non-governmental organizations (NGOs), academia and industry. Findings This study demonstrated that the “reducing environmental impact” driver and the “lack of assurance of environmental safety” barrier are the most critical factors affecting the implementation of a circular economy in SMEs in developing countries. These findings provide insights for decision-makers in developing countries to develop a strategy for implementing a circular economy in SMEs. Originality/value This study incorporates the economic, social and environmental aspects to classify the drivers and barriers of circular economy implementation in SMEs of developing countries. Furthermore, this study focuses only on food and beverage SMEs. Researchers rarely touch this sector because of the limitations of circular economy implementation relating to food and beverage products.