Exploring the Circular Economy in International Business: Current Trends and Future Directions—A Systematic Literature Review

Manisha Pillai (), Hamdi Bennasr, Tarek Ben Hassen and Wafa’a B. Al-Yafei
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Manisha Pillai: College of Business and Economics, Qatar University, Doha P.O. Box 2713, Qatar
Hamdi Bennasr: College of Business and Economics, Qatar University, Doha P.O. Box 2713, Qatar
Tarek Ben Hassen: Department of International Affairs, College of Arts and Sciences, Qatar University, Doha P.O. Box 2713, Qatar
Wafa’a B. Al-Yafei: College of Business and Economics, Qatar University, Doha P.O. Box 2713, Qatar

Sustainability, 2025, vol. 17, issue 21, 1-23

Abstract: The circular economy (CE) is increasingly central to international business, promoting resource efficiency and mitigating environmental impacts. However, existing literature often examines isolated elements—such as supply chains, innovation, or business models—resulting in a fragmented understanding of circularity within this domain. To address this gap, the present study conducts a systematic literature review of 128 PRISMA-screened articles, employing thematic analysis to identify six prevailing themes. Despite growing interest, the absence of a cohesive framework has led to disjointed inquiries that overlook the systemic complexities of embedding CE in international business. Anchored in the Attention-Based View and synthesized through the Multi-Level Perspective framework, this review reveals critical research gaps. At the micro level, limited attention is given to entrepreneurship, retailer engagement, and the integration of artificial intelligence. At the meso level, studies insufficiently address cross-sector collaboration and localized strategic alliances. At the macro level, consumer-driven circularity remains underexplored. This study proposes an integrative framework to bridge these levels, advancing both theoretical understanding and practical application. By aligning diverse insights, it delineates strategic pathways for institutionalizing CE principles in international business, thereby supporting sustainable development and environmental stewardship.

Keywords: international business; circular economy; environmental sustainability; attention-based view; multi-level perspective framework (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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