Drivers and barriers to circular economy implementation: An explorative study in Pakistan’s automobile industry

AGYEMANG, Martin, KUSI-SARPONG, Simonov, KHAN, Sharfuddin Ahmed, MANI, Venkatesh, REHMAN, Syed Tahaur and KUSI-SARPONG, Horsten (2019). Drivers and barriers to circular economy implementation: An explorative study in Pakistan’s automobile industry. Management Decision, 57 (4), 971-994.

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Purpose Circular economy (CE) has gained considerable attention from researchers and practitioners over the past few years because of its potential social and environmental benefits. However, limited attention has been given in the literature to explore the drivers and barriers in CE implementation in emerging and developing countries besides China. Therefore, the purpose of this paper is to identify the drivers and barriers to implementing a CE in Pakistan’s automobile manufacturing industry. Design/methodology/approach This study adopts an explorative approach to understand the drivers and barriers at the micro-level CE implementation in Pakistan’s automobile industry. The research design includes both qualitative and quantitative methods using a survey instrument and interviews to gather data. The use of the two main sources of data provides the opportunity for triangulation of the data to improve the validity of the findings, and enables greater inferences from the results. Findings This study shows that “profitability/market share/benefit” (30 percent), “cost reduction” (22 percent) and “business principle/concern for environment/appreciation” (19 percent) are the top three drivers. Similarly, “unawareness” (22 percent), “cost and financial constraint” (20 percent) and “lack of expertise” (17 percent) are the top three barriers in implementing CE principles in Pakistan automobiles industry. Research limitations/implications This study considers only Pakistan automobiles industry, and the practical implications potentially limit to emerging Asian economies. Originality/value This study is the first of its kind that has investigated the drivers and barriers of CE at the organizational level in the automobile industry of Pakistan. Thus, it helps to advance the understanding of the subject matter and enables the formulation of effective policies and business strategies by practitioners for upscaling CE and sustainability.

Item Type: Article
Uncontrolled Keywords: 1503 Business and Management; 1505 Marketing; 2202 History and Philosophy of Specific Fields; Business & Management; 3505 Human resources and industrial relations; 3506 Marketing; 3507 Strategy, management and organisational behaviour; 5002 History and philosophy of specific fields
Identification Number:
Page Range: 971-994
SWORD Depositor: Symplectic Elements
Depositing User: Symplectic Elements
Date Deposited: 17 Oct 2023 14:16
Last Modified: 17 Oct 2023 14:30

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