Contextual relationships among drivers and barriers to circular economy: An integrated ISM and DEMATEL approach

Abstract

Recently, Circular Economy (CE) is implemented by the manufacturing industries since it helps the management to reduce waste and increase productivity. Industries are adopting CE because it helps them gain economic, environmental, and social benefits. This study is primarily aimed at the identification and ranking of the drivers and barriers for the implementation of CE in the automobile industry. For this, an integrated approach of interpretive structural modeling (ISM) and decision-making trial and evaluation laboratory (DEMATEL) is utilized. The results of this study indicate that the share/ benefit and reduction of cost are the most critical drivers while unaware/limited knowledge and cost and financial constraint are the major barriers for the implementation of CE in the automobile industry. This integrated approach will help the decision makers and policy makers to take immediate and effective actions, and focus on the productivity of the company.