Circular Economy Readiness Indicators: An Empirical Study on Multitool Assessment Frameworks at the Enterprise Level

ABSTRACT Many circular economy ( CE ) readiness tools exist at the enterprise level, but most lack a clear theoretical foundation and are unable to capture the multidimensional complexity of CE transitions. This study addresses the gap by developing Circular Economy Readiness Indicators (CERIs) that integrate the Natural‐Resource‐Based View, Institutional Theory, and the Theory of Planned Behavior into a single multidimensional framework. A content analysis of 278 indicators from 30 CE readiness tools (2014–2024) identified three theoretically grounded dimensions: technical‐operational, governance‐external, and behavioral‐organizational, with r‐strategies and materials and resources showing the highest coverage. CERIs were then validated across 30 Chinese enterprises (10 small, 10 medium, 10 large; 15 certified, 15 noncertified), revealing a wide spread of readiness levels, a strong and statistically significant size effect, a certification advantage that emerges clearly at medium and large scale but not among small firms, and weaker governance than technical‐operational performance. CE RIs offer a theoretically grounded, validated tool for assessing enterprise CE readiness, with implications for managers, policymakers, and scholarship.