Circular economy practices and environmental performance for manufacturing firm’s: a systematic literature review

Abstract

This study presents a systematic literature review of environmental issues in the manufacturing industry, provides an overview of circular supply chain management (CSCM) and outlines a brief background of the circular economy practices (CE). The literature review was done using multiple different sources of data collection, such as Science Direct, Scopus, Emerald, Wiley Online Library, Sage and Elsevier. The discussion continues with the conceptualisation of Circular economy practices (CE) and organisational environmental performance (EP). The current study aims to establish the relationship between Circular economy practices (CE) and organisational Environmental Performance (EP), and identify the subsequent impacts of the association. Multitudinous benefits witnessed from (CE) adoption have been identified in the mainstream literature, including reduced resource consumption, reduced environmental emissions, generation of a privileged competitive position for various businesses, and the minimisation of risks. Moreover, the (CE) also intertwines with the internal operations of individual businesses and environmental sustainability initiatives of a company, such as increased energy efficiency, waste recovery, use of renewable energy sources, and input of recycled or sustainable materials in the raw material supply chain. In this regard, businesses are required to adapt their business strategies to implement the (CE) principles to achieve environmental and sustainable goals. A thorough review of past studies and research approaches underlying the existing research frameworks and hypotheses contributed to the conceptual framework development of the current study. This analysis could be a significant reference for other researchers or organisations which conduct quantitative research in terms of selecting a valid and reliable scale as well as fulfilling the requirements of the research context.