Assessment of circular economy enablers: Hybrid ISM and fuzzy MICMAC approach

Abstract

Abstract The objective of this study is to identify the enablers of circular economy (CE) implementation in manufacturing organizations and to assess them to develop the inter-relationship amongst each enabler. Through extensive literature review and experts’ opinion total 21 circular economy enablers (CEEs) have been identified for the development of contextual relationship between them. Hybrid interpretive structural equation (ISM) modeling and fuzzy MICMAC approach is utilized for the development of hierarchical model that depict the contextual relationship as well as identify the interrelationship amongst each CEEs. Further, the developed hybrid framework would assist the top management in focusing on those CEEs that are most important for effective CE implementation. The identified CEEs possessing high driving power and low dependency power are strategically very important for CE implementation whereas CEEs having low driving power and high dependency power are performance dependent CEEs. The results shows that the top management commitment as the key enabler for initiating and designing best possible organization structure and organization culture which can lead to effective CE implementation. Globalization and environmental policy are the other two key enablers that have direct impact on the long-term strategic planning towards CE implementation. This study exhibits strong implications for both practitioners and academicians whereas the practitioners need to focus on the driving CEEs during implementation of CE within their organizations and academicians may persuade management to classify several issues that are substantial in tackling the CEEs.