Small- and Medium-Sized Enterprises’ Transformation to Circular Business Models: A Qualitative Analysis in the EU and the United States

Thomas Draschbacher (), Camilla Reis (), Martin Glinik () and Joseph Sarkis ()
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Thomas Draschbacher: Institute for General Management and Organization, Graz University of Technology
Camilla Reis: Institute for General Management and Organization, Graz University of Technology
Martin Glinik: Institute for General Management and Organization, Graz University of Technology
Joseph Sarkis: WPI Business School, Worcester Polytechnic Institute

Chapter 8 in Industry 5.0 for SMEs, 2026, pp 229-265 from Springer

Abstract: Abstract This chapter considers environmental sustainability in Industry 5.0 for small and medium-sized enterprises (SMEs). Industry 5.0 sees manufacturing environmental footprint reduction as an equally important goal to manufacturing process profitability and productivity. The adoption of circular economy principles such as reuse, repair, recycling, and refurbishing can greatly enhance the business and sustainability goals. Manufacturers need to make significant adjustments to their existing business models for circularity to become a reality. For SMEs, transformation to circularity is even more difficult due to limited resources and immediate business concerns. We introduce and evaluate the barriers and drivers for SME circular business model transformation in a preliminary qualitative analysis. We provide actor perceptions of these barriers and drivers in a variety of industrial settings including consumer electronics, lithium-ion battery, food packaging, and woodcraft industries. Results show that barrier and driver perceptions tend to differ across industries in different regions—specifically the United States and Europe. Significant barriers and drivers to each industry are identified with potential transformational activities recommended.

Keywords: Industry 5.0; SME; Circular economy; Business model (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-032-26279-0_8

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DOI: 10.1007/978-3-032-26279-0_8

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