Causality of circular supply chain management in small and medium-sized enterprises using qualitative information: a waste management practices approach in Indonesia

Abstract

Circular supply chain management (CSCM) is a promising way to achieve economic and environmental sustainability and address the waste problem. However, developing a fully circular supply chain system is costly and time-consuming, especially for small and medium-sized enterprises (SMEs). SMEs need to achieve better CSCM by implementing waste management practices. This study aims to (1) critically validate the hierarchical structure of CSCM for SMEs; (2) identify the causal interrelationships among the attributes; and (3) determine the practical attributes for SME improvement in Indonesia. An approach consisting of the fuzzy Delphi method (FDM), best worse method (BWM), and fuzzy decision-making trial and evaluation laboratory (FDEMATEL) is designed to fulfill the objectives of this study. The results show the hierarchical structure in CSCM implementation that benefit SMEs through performance improvement gains. Waste management practices and circular product design are causal aspects; in particular, waste management practices support SMEs in building CSCM as an alternative. The criteria to provide practical insights for CSCM in Indonesia are eco-design, sustainable product design, green technology, waste treatment capability, and designing for the environment.