Circular Economy Transition in Bangladesh's Ready‐Made Garments Sector: Investigating the Key Barriers Through a Fuzzy DEMATEL Analysis

Sheak Salman, Mehedi Hasan Shanta, Rifath Mahmud Uday and Rafat Rahman

Business Strategy and the Environment, 2025, vol. 34, issue 4, 3982-4000

Abstract: This study focuses on Bangladesh's thriving ready‐made garments (RMG) sector, which plays a pivotal role in the nation's economy. Though the sector has achieved remarkable success in garment exports, transitioning from linear economy (LE) to circular economy (CE) practices is essential for its sustainable production and economic growth. This study identifies and analyzes the critical barriers to the adoption of CE practices in Bangladesh's RMG sector using two systematic stages. The first stage utilizes the identification of 12 key barriers by applying the Delphi method, and the subsequent stage utilizes the Fuzzy Decision‐Making Trial and Evaluation Laboratory (DEMATEL) method to explore the causal relationships among these barriers, shedding light on their significance and interdependencies. The findings of the study indicate that limited funding for circular business models emerges as the most influential barrier, underscoring the importance of ensuring adequate funds for CE implementation. Inadequate collaboration of entrepreneurs and researchers and lack of professional in environmental management further hinder the progress, highlighting the need for building collaboration for research and advancements and involving experts for environmental management. This research contributes to sustainable production practices in emerging economies and underscores the importance of CE principles in a global context. The study's comprehensive approach provides valuable insights for RMG industry stakeholders, aiming to enhance CE adoption in the RMG sector, thereby prioritizing the strategic efforts and promoting sustainable practices. By identifying and addressing these barriers, Bangladesh's RMG industry can advance its journey towards a more circular and environmentally responsible future.

Date: 2025
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