Unlocking Barriers to Circular Economy: An ISM-Based Approach to Contextualizing Dependencies

Steffen Foldager Jensen, Jesper Hemdrup Kristensen, Jonas Nygaard Uhrenholt, Maria Camila Rincón, Sofie Adamsen and Brian Vejrum Waehrens
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Steffen Foldager Jensen: Center for Industrial Production, Department of Materials and Production, Aalborg University, 9220 Aalborg, Denmark
Jesper Hemdrup Kristensen: Center for Industrial Production, Department of Materials and Production, Aalborg University, 9220 Aalborg, Denmark
Jonas Nygaard Uhrenholt: Center for Industrial Production, Department of Materials and Production, Aalborg University, 9220 Aalborg, Denmark
Maria Camila Rincón: Center for Industrial Production, Department of Materials and Production, Aalborg University, 9220 Aalborg, Denmark
Sofie Adamsen: Center for Industrial Production, Department of Materials and Production, Aalborg University, 9220 Aalborg, Denmark
Brian Vejrum Waehrens: Center for Industrial Production, Department of Materials and Production, Aalborg University, 9220 Aalborg, Denmark

Sustainability, 2022, vol. 14, issue 15, 1-17

Abstract: Despite it being imperative to a sustainable development, a circular economy remains scarcely adopted by companies. Barriers towards this are extensively explored yet with little focus on their mutual dependencies. Neglecting dependencies is argued to cause suboptimization and lead to unsuccessful circular projects. To counter this and strengthen companies in assessing dependencies among context-dependent barriers towards a circular transition, this study proposes a practice-oriented approach based on an interpretive structural modelling methodology. This is validated through a case study with a Danish mechatronics manufacturer with which fourteen semi-structured interviews, a survey, and a workshop were conducted. Findings reveal an interwoven network of barriers with numerous chain mechanisms across managerial, market-related, financial, technical, and regulative aspects, which underpins the need to approach the circular transition systemically. Furthermore, the study demonstrates the ability of the methodology to facilitate discussions and assist industrial practitioners, both on a strategic and operational level, in systematically untangling the complex interrelations to identify root causes for inertia and prioritize mitigation measures.

Keywords: sustainability; circular economy; interpretive structural modelling; barriers; enablers; closed-loop supply chain; sustainable management (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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