Key strategies to implement circular economy in SMEs

Circular Economy (CE) is fast becoming a matter of high importance for researchers, governments, and firms, to pursue social prosperity and to increase the resilience level of the natural environment. In this context, Small... [ view full abstract ]

Circular Economy (CE) is fast becoming a matter of high importance for researchers, governments, and firms, to pursue social prosperity and to increase the resilience level of the natural environment. In this context, Small and Medium Enterprises (SMEs) has an important role because they represent some of the most important motors of development and progress. Thus, the main objective of this study is to identify the key strategies which may favor the CE paradigm in SMEs. Moreover, these key strategies should encourage the eco-innovation to build competitive advantage and create value in coherence with nature. Regarding the purpose of this study, we used a mixed methodological approach, based on a literature review and a focus group to gather qualitative data. This focus group has been carried out via experts such as researchers and practitioners from recognized universities, sustainable SMEs, and consultancy firms in Spain. As a result, this study proposes a kit of strategies that could help SMEs to mature and orient their corporate strategy towards the circular economy and build a competitive advantage in the market. Moreover, this study proposes a group of internal and external factors that should support the implementation of the kit of strategies. Finally, some useful dynamic capabilities are defined to undertake the CE in the business performance.

This research is part of the EcoPyme project which has been sponsored by the Spanish National Program for Fostering Excellence in Scientific and Technical Research and The European Regional Development Fund: DPI2015-70832-R (MINECO/FEDER).

Keywords: Circular Economy, SMEs, competitive advantage, environmental management, dynamic capabilities