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

Drivers and barriers to circular economy implementation: an explorative study in Pakistan’s automobile industry
Drivers and barriers to circular economy implementation: an explorative study in Pakistan’s automobile industry
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.
0025-1747
971-994
Agyemang, Martin
3acf48d4-ea36-426a-9fd7-028fc18d9f47
Kusi-Sarpong, Simonov
a7e68240-2b34-456e-9849-c01bd10c68f7
Khan, Sharfuddin Ahmed
4e5d9744-cff5-4e3f-9a3f-08535970d2a4
Mani, Venkatesh
fc79a1dc-c774-4984-9d67-6ad5456a023d
Rehman, Syed Tahaur
190ffce1-5ac7-4546-850b-198d47aee086
Kusi-sarpong, Horsten
61971db4-94ad-4183-aaad-0e2c1af6072f
Agyemang, Martin
3acf48d4-ea36-426a-9fd7-028fc18d9f47
Kusi-Sarpong, Simonov
a7e68240-2b34-456e-9849-c01bd10c68f7
Khan, Sharfuddin Ahmed
4e5d9744-cff5-4e3f-9a3f-08535970d2a4
Mani, Venkatesh
fc79a1dc-c774-4984-9d67-6ad5456a023d
Rehman, Syed Tahaur
190ffce1-5ac7-4546-850b-198d47aee086
Kusi-sarpong, Horsten
61971db4-94ad-4183-aaad-0e2c1af6072f

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. (doi:10.1108/MD-11-2018-1178).

Record type: Article

Abstract

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.

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Accepted/In Press date: 2 December 2018
Published date: 18 April 2019

Identifiers

Local EPrints ID: 434516
URI: https://eprints.soton.ac.uk/id/eprint/434516
ISSN: 0025-1747
PURE UUID: f93e46f4-1210-440d-aa2c-2d73fddc1ad6

Catalogue record

Date deposited: 25 Sep 2019 16:30
Last modified: 09 Dec 2019 17:31

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Contributors

Author: Martin Agyemang
Author: Sharfuddin Ahmed Khan
Author: Venkatesh Mani
Author: Syed Tahaur Rehman
Author: Horsten Kusi-sarpong

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