INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue X October 2025
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Barriers to Circular Supply Chain Implementation in Indian Textile
SMEs: An Exploratory Qualitative Study
Senthil Kumar N1*, Santhya S2, Sashtiga K3
1*Assistant Professor- III, School of Management Studies, Bannari Amman Institute of Technology,
Sathyamangalam, India
2,3 Second year MBA, School of Management Studies, Bannari Amman Institute of Technology,
Sathyamangalam, India
DOI: https://doi.org/10.51244/IJRSI.2025.1210000062
Received: 06 October 2025; Accepted: 12 October 2025; Published: 03 November 2025
ABSTRACT
The textile and apparel sector is a cornerstone of India’s industrial growth, employing millions and contributing
significantly to exports and GDP. However, it is also resource-intensive and polluting, largely due to linear “take-
make-dispose” supply chains. As environmental concerns grow, circular supply chains (CSC) have emerged to
reduce waste, optimise resources, and close material loops especially crucial in textiles, given high material turnover,
waste, and chemical use. Despite global momentum, research on how Indian SMEs engage with CSCs remains
limited.
This study explores barriers to CSC implementation in Indian textile SMEs using an exploratory qualitative
approach. Semi-structured interviews with supply chain and operations managers across 23 SMEs revealed multiple
interrelated barriers: low awareness of circular principles, limited access to green technologies and financing,
inadequate infrastructure, weak regulatory enforcement, and internal resistance due to perceived risks and uncertain
returns. Findings highlight the need for integrated support through policy innovation, ecosystem partnerships, and
capacity-building initiatives tailored to SMEs. This study contributes empirical evidence on CSC adoption in Indian
SMEs and provides a foundation for policy and comparative research across manufacturing sectors.
Keywords: Small and Medium Enterprises (SMEs), Supply Chain Transformation, Organisational Readiness,
Circular Supply Chains, Emerging markets.
INTRODUCTION
he textile and apparel sector is globally recognised for its socio-economic contributions as well as its significant
environmental footprint. Responsible for vast consumption of water, energy, and chemicals, the industry is also one
of the largest producers of industrial waste. Its prevailing linear model—characterised by the extract-produce-
consume-discard cycle—has accelerated resource depletion and environmental degradation. In response to
mounting environmental concerns and stakeholder pressure, the concept of a circular economy has gained traction,
with Circular Supply Chains (CSC) emerging as a strategic pathway to decouple economic growth from resource
consumption. Unlike traditional models, CSCs promote product longevity, material recovery, closed-loop logistics,
and systemic waste reduction, thereby aligning supply chain operations with sustainability objectives.
In the global race toward circularity, the textile industry has become a focal point due to its highly fragmented value
chain, short product life cycles, and post-consumption waste challenges. Several international brands and developed
economies have begun embedding circular principles into design, sourcing, and logistics. However, in emerging
markets like India—one of the world's largest textile-producing countries circular integration remains in its infancy.
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Despite India’s textile sector being a key economic engine, contributing around 2% to GDP and employing over 45
million people, its value chain is predominantly driven by small and medium-sized enterprises (SMEs)..
The structural characteristics of Indian textile SMEs such as informal practices, limited financial capacity, outdated
technology, and dependence on traditional supply chain models pose unique challenges to sustainability
transformation. While large textile corporations may access the capital, infrastructure, and global knowledge
required for circular transitions, SMEs often face significant institutional and operational barriers. These include a
lack of awareness about circularity, limited access to green financing, supply-side inflexibility, and the absence of
regulatory incentives. Moreover, research on CSCs within SMEs especially in the Global South is sparse, with
existing literature largely concentrated in developed economies or focused on multinational enterprises. The absence
of sector-specific, empirical research on barriers to CSC adoption within Indian textile SMEs presents a critical
knowledge gap.
This study aims to address by conducting an exploratory qualitative investigation into the barriers that prevent Indian
textile SMEs from adopting circular supply chain practices. The research seeks to identify and analyse the
operational, organisational, and ecosystem-level constraints through the lived experiences and managerial insights
of SME leaders in the textile and apparel sector. By focusing on a sector that is simultaneously environmentally
intensive and economically vital, this study contributes both practical and theoretical value offering grounded
insights for policymakers, practitioners, and sustainability scholars interested in advancing circularity in emerging
economies.
LITERATURE REVIEW
Circular Economy and Supply Chains
The circular economy (CE) is increasingly recognised as a transformative framework for sustainability, aiming to
minimise resource use, extend product lifecycles, and reduce environmental impact [1]. In supply chain
management, circular supply chains (CSC) operationalise these principles by incorporating reuse, remanufacturing,
recycling, and reverse logistics into traditional processes. This approach not only conserves resources but also fosters
innovation, cost efficiency, and regulatory compliance. For example, firms in Europe and North America have
integrated closed-loop systems where post-consumer products are collected, refurbished, and reintroduced into
production, creating economic and environmental value simultaneously [5].
Circular supply chains can be classified as closed-loop systems, which recycle products back into the same chain,
or open-loop systems, where materials are redirected to alternative industries or markets [3]. While the theory of
CSC is well-developed, practical implementation varies widely across sectors and regions. High-income countries
have piloted advanced CSC initiatives using Industry 4.0 technologies such as IoT-enabled tracking, AI-based
material sorting, and predictive analytics to optimise recycling streams [13]. However, these technologies require
significant capital investment and skilled labour, often making CSC implementation more challenging for SMEs,
especially in developing countries [1]
Circularity in the Textile Sector
Textile and apparel industries are notorious for their environmental intensity: they account for approximately 20%
of global industrial water pollution and generate millions of tons of post-consumer textile waste annually [5].
Circularity initiatives in textiles primarily focus on three areas: eco-design, waste valorisation, and reverse logistics.
Eco-design involves selecting materials and designing products to extend life and facilitate recycling. Waste
valorisation converts textile scraps or worn-out garments into new products or energy, reducing landfill pressure.
Reverse logistics manages the return, collection, sorting, and processing of used garments into productive channels
[5], [6].
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Globally, leading apparel brands such as H&M, Zara, and Patagonia have pioneered take-back programs, rental
models, and closed-loop production lines. These initiatives have demonstrated that integrating circularity can reduce
raw material costs, improve brand value, and comply with emerging sustainability regulations. In India, the scenario
is more fragmented. Large corporations and organised retail chains have begun experimenting with circular models,
but SMEs—which form over 90% of the sector—still predominantly operate within linear supply chains [2], [3].
The gap between global best practices and local SME capabilities underscores the need for empirical research into
the specific challenges and barriers Indian textile SMEs face in adopting circular practices
Role of SMEs in Sustainable Supply Chains
SMEs play a critical role in economic development, employment generation, and regional industrial clusters. In
India, textile SMEs account for the majority of manufacturing units, particularly in states like Tamil Nadu, Gujarat,
Punjab, and Maharashtra [11]. Despite their importance, SMEs face resource constraints that limit their ability to
implement sustainable or circular supply chain practices. Financial constraints, including limited access to credit
and high upfront investment requirements for recycling infrastructure, are major hurdles [14]. Technological
limitations, such as outdated machinery and a lack of digital tracking systems, further restrict the operationalization
of CSCs [13].
Additionally, SMEs often suffer from managerial and informational barriers. Managers may have limited awareness
of circular supply chain principles or perceive adoption as a risky, low-return venture [1]. Cultural factors, such as
resistance to change and reliance on traditional production methods, also hinder transformation. Finally, policy and
regulatory gaps—such as inconsistent enforcement of environmental regulations, lack of incentives, and absence of
standardised waste management frameworks—limit SMEs’ ability to engage in circular practices [10]. Collectively,
these factors demonstrate why SMEs require tailored strategies and policy interventions to facilitate the transition
to circular supply chains
Barriers to CSC Implementation (Global Evidence)
The literature identifies technological, financial, managerial, cultural, and regulatory barriers to CSC adoption
across industries:
Technological barriers include the absence of infrastructure for material recovery, inadequate product tracking
systems, and limited access to eco-friendly machinery [13], [5].
Financial barriers involve high initial investment costs and uncertain returns from circular initiatives, which are
particularly restrictive for SMEs with tight capital budgets [14].
Managerial and cultural barriers relate to limited strategic vision, lack of leadership commitment, resistance to
change, and low awareness of circular practices [2].
Regulatory and institutional barriers include weak enforcement of environmental policies, absence of incentives
for SMEs, and limited support from industry associations [1], [10].
While these barriers have been extensively documented in developed economies, empirical evidence for Indian
textile SMEs remains sparse. Most studies either focus on large corporations or examine manufacturing in broad
terms, leaving a critical knowledge gap regarding sector-specific challenges in resource-constrained settings [3],
[11].
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RESEARCH OBJECTIVES
Research Aim
The primary aim of this study is to investigate the barriers to Circular Supply Chain (CSC) adoption in Indian textile
SMEs. While circular supply chains are increasingly recognized as a key strategy for sustainability and resource
efficiency in global supply chains, their adoption in emerging economies—particularly among SMEs—remains
limited, fragmented, and poorly understood. SMEs, which dominate India’s textile sector, face unique challenges in
integrating circular practices due to constraints in financial resources, technical capabilities, managerial expertise,
and regulatory support.
This study addresses this gap by systematically exploring operational, managerial, and ecosystem-level factors
influencing CSC implementation, providing both empirical insights and practical recommendations for managers
and policymakers.
Research Objectives
Assess awareness of CSC concepts among textile SMEs: Evaluate managers’ and staff’s understanding of circular
economy principles—reuse, remanufacturing, recycling, and closed-loop supply chains—and their relevance to
textile operations.
Identify barriers to CSC adoption: Examine internal constraints (financial, technological, human resources,
managerial inertia) and external constraints (policy gaps, weak regulation, market pressures, supply chain
misalignment).
Understand managerial perspectives on CSC feasibility and value: Explore perceptions of costs, expected
returns, operational feasibility, and strategic alignment to gauge organizational readiness.
Explore ecosystem-level enablers: Assess the role of policies, industry associations, partnerships, and technology
providers in supporting and accelerating CSC adoption.
Rationale for Objectives and Questions
The chosen objectives and research questions are guided by:
Research gap identification: While global literature highlights barriers to CSC adoption, empirical studies focusing
on Indian textile SMEs remain limited.
Sector-specific relevance: SMEs dominate India’s textile sector and play a crucial role in economic growth and
environmental outcomes. Understanding their constraints and enablers informs both managerial practice and policy
development.
Exploratory approach: Given the underexplored nature of CSC adoption in Indian SMEs, a qualitative approach
facilitates rich, contextual insights rather than relying on predefined assumptions.
Practical applicability: Insights derived from the objectives and research questions can guide managers and
policymakers in designing targeted interventions, incentive mechanisms, and capacity-building programs to support
circular transitions.
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RESEARCH METHODOLOGY
Research design
This study adopts an exploratory qualitative research design to examine the barriers to Circular Supply Chain (CSC)
adoption in Indian textile SMEs. Qualitative research is particularly appropriate when the objective is to understand
complex, context-specific, and underexplored phenomena, such as SME practices in emerging economies. Unlike
quantitative methods, which focus on numerical measurement, qualitative research allows for rich, descriptive
insights into managerial perspectives, organizational practices, and perceptions of feasibility, which are crucial for
understanding the nuanced challenges of circular transitions.
The study takes a multiple case study approach, examining SMEs operating in manufacturing, dyeing and processing
segments. This approach allows for comparative analysis across different organizational contexts, highlighting both
common and unique barriers in adopting circular supply chains. SMEs were selected to ensure diversity in size,
operational maturity, regional distribution, and market orientation, providing a holistic understanding of sector-
specific challenges.
Sampling strategy
A purposive and criterion-based sampling strategy was employed. SMEs were selected based on the following
criteria:
Active involvement in textile manufacturing, dyeing and processing.
Existence of basic supply chain operations, such as procurement, production, and distribution.
Within each SME, key informants included operations managers, supply chain heads, production managers and
plant supervisors, as they hold detailed knowledge about operational processes, resource allocation, and
organizational decision-making. Selecting multiple respondents from each SME ensures data triangulation and
reduces the risk of individual bias.
Fig 1 Sector-wise Production Output of Textile SMEs
145
125
25
250
105
325
0
50
100
150
200
250
300
350
Dyed Fabrics Dyed Textiles Textiles Garments Ready-made
Garments
Fabrics
Dyeing Processing Weaving
Total
Total
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Data Collection
Semi-structured interviews were the primary data collection method. This approach allows researchers to balance
structure with flexibility: core questions ensure alignment with research objectives, while open-ended probes allow
participants to elaborate on emergent themes. The interview protocol was developed based on insights from the
literature review, particularly focusing on the barriers identified in Indian and global contexts.
The interviews explored five broad domains:
Awareness and understanding of circular supply chain principles: exploring knowledge of CE concepts, eco-design,
reverse logistics, and material loops.
Internal resource and capability assessment: examining financial capacity, technical infrastructure, managerial
commitment, and workforce skills.
Operational, financial, technological, and managerial challenges: identifying constraints that hinder circular
practices, including equipment limitations, high implementation costs, and workflow rigidity.
External ecosystem influences: assessing regulatory frameworks, policy support, industrial partnerships, and market
pressures.
Perceived benefits, risks, and feasibility: understanding management perceptions of cost-benefit tradeoffs,
competitive advantage, and sustainability alignment.
Data Analysis.
Ensuring Reliability and Validity
Ensuring reliability and validity is crucial to establish the credibility and trustworthiness of qualitative research. In
this study, multiple strategies were employed to strengthen methodological rigor and minimize researcher bias.
Reliability was maintained through a systematic and transparent research design. A uniform semi-structured
interview guide was used for all 23 SME respondents to ensure procedural consistency. Detailed documentation of
the research process—including data collection, coding, and theme development—was maintained as an audit trail,
allowing the study to be replicable. Moreover, the coding process was cross-verified by independent academic
reviewers to ensure consistency and coherence between themes and underlying data.
Validity was enhanced through methodological triangulation and respondent validation. Triangulation was achieved
by comparing data from SMEs operating in different textile clusters across Tamil Nadu, thereby capturing variations
in scale, management style, and resource availability. Member checking was conducted by sharing summarized
interpretations with selected participants, ensuring that the researcher’s conclusions accurately reflected their
perspectives. Peer debriefing with academic mentors further ensured analytical transparency and interpretive
accuracy.
Additionally, the study adopted reflexivity throughout the research process, wherein the researcher continuously
reflected on personal assumptions, biases, and positionality to maintain objectivity. Together, these practices ensured
that the findings are both dependable and credible, meeting qualitative research standards of reliability, validity, and
authenticity.
Ethical Considerations
Ethical compliance was an integral part of the research design, ensuring that participants’ rights, dignity, and
confidentiality were fully protected in accordance with institutional ethical guidelines.
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Before data collection, informed consent was obtained from all participants after clearly explaining the study’s
purpose, procedures, and voluntary nature of participation. Respondents were assured of their right to withdraw at
any stage without any consequence. Anonymity was maintained by assigning codes (SME 1–SME 23) instead of
using company or individual names, thereby protecting organizational identities and sensitive commercial data. The
research process upheld the principles of honesty, transparency and integrity, avoiding any form of manipulat ion or
coercion.
Given that the research was conducted across Tamil Nadu, cultural and linguistic sensitivity was maintained by
conducting interviews in the participants’ preferred language (Tamil or English), ensuring clear understanding and
comfort. Throughout the study, the researcher adhered to the ethical norms of respect, voluntary participation,
confidentiality, and academic responsibility.
LIMITATIONS OF THE METHODOLOGY
While the qualitative exploratory approach provides rich insights, it is important to acknowledge its limitations:
Sample size constraints: Findings are based on 23 SMEs and may not generalize across the entire Indian textile
sector.
Subjectivity: Interpretation of qualitative data may introduce researcher bias; this can be mitigated through
techniques such as triangulation and member checking.
Regional bias: SMEs are concentrated in certain industrial clusters; practices in other regions may vary.
Time constraints: Semi-structured interviews are time-intensive, which limited the total number of participants.
Despite these limitations, the methodology is well-suited for uncovering underexplored barriers, generating
actionable insights, and laying a foundation for future large-scale studies.
RESULTS & FINDINGS
This section presents the key findings derived from interviews with 23 textile SMEs located across Tamil Nadu. The
results were analyzed thematically, identifying major categories of barriers affecting the adoption of Circular Supply
Chain (CSC) practices. The findings reveal six dominant barrier themes: financial, technological,
managerial/organizational, behavioral, regulatory, and awareness-related.
Awareness and understanding of CSC
Nearly all SMEs cited financial limitations as a primary obstacle. Establishing circular processes such as recycling,
remanufacturing, or closed-loop production was perceived as cost-intensive. Many firms reported inadequate
capital, limited access to credit, and lack of financial incentives to invest in sustainable technologies.Several
managers indicated that available funds were prioritized for immediate operational needs rather than long-term
sustainability goals.
Table 1 Awareness of CSC Concepts among Textile SMEs (n = 23)
Awareness Level No. of SMEs Percentage (%) Description
Low / Minimal
Understanding
15 65%
Limited familiarity with CE
principles; minimal training.
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Moderate Awareness 6 26%
Aware of CE ideas but not
widely applied.
High Awareness 2 9%
Small steps of reuse/recycling
implemented.
Thus, high initial investment costs, absence of green financing, and perceived financial risks collectively emerged
as the most prominent barriers to CSC adoption.
Internal Organizational Barriers
The majority of SMEs operated with outdated machinery and limited digital infrastructure. Many lacked access to
affordable technologies for waste segregation, reverse logistics tracking, or digital monitoring of material flows.
Table 2 Major Technological Barriers among SMEs (n = 23)
Technological Limitation
No. of SMEs
Reporting
Percentage (%)
Outdated machinery / infrastructure 18 78%
Absence of digital tracking or automation 14 61%
Unavailability of affordable recycling
technology
11 48%
Limited technical expertise 9 39%
Even where interest existed, technological unavailability or high costs restricted adoption. Smaller firms depended
heavily on manual processes, further reducing efficiency.
These findings indicate that technological gaps, along with inadequate infrastructure and limited technical support,
hinder the implementation of circular practices in Tamil Nadu’s textile SMEs.
Financial & Infrastructural Challenges
SMEs consistently reported financial limitations as a major barrier:
High capital investment: Costly machinery for recycling, eco-friendly production, and digital tracking was
unaffordable (SME14, SME20).
Limited access to finance: Banks rarely provide loans for circular initiatives; cash flow constraints are common
(SME16, SME19).
Inadequate infrastructure: Storage, sorting, and reverse logistics systems were often absent or insufficient
(SME17, SME22).
These findings mirror global evidence that financial and infrastructural challenges significantly hinder circular
transitions in SMEs.
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Table 3 Frequency of Reported Financial and Infrastructure Challenges among SMEs (n = 23)
Financial / Infrastructure Challenge No. of SMEs Reporting Percentage (%)
High initial investment cost 20 87%
Limited access to green finance 17 74%
Inadequate infrastructure (storage/logistics) 15 65%
Cash-flow constraints 13 57%
Ecosystem & Policy-Level Gaps
External factors influencing CSC adoption include:
Weak policy support: Respondents noted limited incentives and inconsistent government enforcement (SME12,
SME21).
Insufficient industry guidance: Associations rarely provide training, best practices, or collaborative platforms
(SME11, SME20).
Lack of standardization: SMEs reported unclear regulations and absence of benchmarks for circular practices
(SME19, SME23).
Table 4 Policy and Regulatory Gaps Identified by SMEs (n = 23)
Regulatory / Policy Issue No. of SMEs Reporting Percentage (%)
Weak enforcement / unclear guidelines 14 61%
Lack of incentives for circular initiatives 12 52%
Complex procedures for subsidy access 10 43%
Absence of standardized benchmarks 8 35%
These findings align with Institutional Theory, which posits that regulatory, normative, and mimetic pressures
influence organizational adoption of innovations.
Managerial Perceptions and Resistance
Managers often perceived CSC adoption as risky, costly, and disruptive, leading to hesitation. Perceived lack of
immediate ROI, combined with fear of operational disruptions, highlights behavioral and strategic barriers to CSC
adoption, consistent with literature.
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Table 5 Managerial and Organizational Constraints among SMEs (n = 23)
Organizational / Managerial
Barrier
No. of SMEs Reporting Percentage (%)
Weak leadership / commitment 13 57%
Focus on short-term profits 10 43%
Lack of strategic planning 9 39%
Resistance from employees 8 35%
DISCUSSION
Linking Findings to Literature
Our results resonate with prior studies showing that awareness, internal resources, financial constraints, and external
support systems are critical determinants of CSC adoption in SMEs. The lack of understanding of circular principles,
combined with resource scarcity and weak institutional support, reproduces the barriers reported in other emerging
economies.
Theoretical Interpretation
RBV perspective: Internal resources—financial capital, technological capability, human skills—directly influence
SMEs’ ability to implement circular strategies. Limited resources hinder adoption, consistent with RBV predictions.
Institutional Theory perspective: External pressures, including regulatory enforcement, normative expectations,
and mimetic influences, shape managerial behavior. Weak policies and industry guidance limit adoption,
highlighting institutional constraints.
Managerial Attitudes
Managers are generally aware but cautious, balancing perceived benefits against operational risks and costs. This
indicates that capacity-building, risk mitigation strategies, and demonstrable ROI are essential to facilitate adoption.
Behavioral resistance and organizational inertia must be addressed alongside financial and infrastructural support.
RECOMMENDATIONS
Summary of Key Findings
This exploratory qualitative study investigated barriers to Circular Supply Chain (CSC) adoption in Indian textile
SMEs. The main findings are:
Low Awareness and Knowledge Gaps: Most SMEs have limited understanding of CSC principles, including 3R
practices, eco-design, and reverse logistics. Awareness deficits contribute to managerial hesitation and low
prioritization of circular initiatives.
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Internal Organizational Barriers: Rigid production workflows, lack of trained personnel, and managerial
resistance to change impede CSC implementation. Organizational inertia and risk aversion were consistently
reported.
Financial and Infrastructural Challenges: High capital investment requirements for recycling, remanufacturing,
and digital tracking, combined with limited access to green financing, restrict circular transitions. Inadequate
infrastructure for material recovery and reverse logistics further exacerbates the problem.
Ecosystem and Policy-Level Gaps: Weak regulatory enforcement, lack of targeted incentives, limited industry
guidance, and absence of standardization create external barriers. SMEs reported minimal support from government
and industry associations.
Managerial Perceptions and Resistance: While some managers recognize long-term benefits, most perceive
circular initiatives as risky, costly, and operationally disruptive. Behavioral and strategic concerns significantly
influence adoption decisions.
Collectively, these findings underscore that CSC adoption in Indian textile SMEs is constrained by an interplay of
internal resource limitations, managerial attitudes, and weak institutional support, consistent with Resource-Based
View (RBV) and Institutional Theory perspectives.
Practical Recommendations
Capacity-Building and Training: Conduct workshops and in-house training to improve awareness of circular
practices and their operational benefits.
Incremental Implementation: Start with low-cost circular initiatives, such as material segregation, small-scale
recycling, or eco-design prototypes, to demonstrate ROI and build confidence.
Collaborative Networks: Partner with local suppliers, recyclers, and technology providers to share resources,
reduce costs, and facilitate knowledge transfer.
Internal Process Optimization: Re-engineer workflows to incorporate circular practices without disrupting
production, supported by clear managerial commitment.
Digital Enablement: Adopt low-cost digital tools for inventory tracking, waste monitoring, and reverse logistics to
gradually enhance technological capability.
Policy Recommendations
To facilitate the adoption of circular supply chains among textile SMEs, several strategic measures can be
implemented. Financial incentives from government and financial institutions, such as low-interest loans, subsidies,
or grants, can support SMEs in investing in circular infrastructure. In addition, regulatory support should be
strengthened through clear guidelines, enforceable standards, and environmental regulations specifically tailored for
SMEs. Industry support programs, provided by associations, can offer training, benchmarking, and collaborative
platforms for knowledge exchange. Furthermore, public-private partnerships can help develop shared recycling
facilities or material recovery centers, thereby reducing the individual burden on SMEs. Finally, awareness
campaigns at national and state levels can enhance understanding of circular economy benefits and promote the
adoption of global best practices
Future Research
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For future research, several avenues can help deepen understanding and validate the findings of this study.
Quantitative validation using surveys with larger samples can measure the prevalence and impact of the barriers
identified in this study. Cross-sector comparisons across different manufacturing industries can reveal sector-
specific challenges and potential solutions. Longitudinal analyses tracking SMEs over time can assess how barriers
evolve and determine which interventions are most effective. Additionally, technology integration studies can
examine the adoption of Industry 4.0 technologies in circular supply chains among resource-constrained SMEs.
Finally, behavioral research focusing on managerial attitudes, risk perception, and cultural factors can provide
insights into the human and organizational dimensions influencing CSC adoption.
CONCLUSION
This study examined the barriers to Circular Supply Chain (CSC) adoption in Indian textile SMEs, highlighting the
complex internal and external challenges they face. Organizational constraints such as limited awareness,
managerial expertise, resource scarcity, and reliance on linear models hinder adoption, while financial and
technological limitations further exacerbate the problem. External factors, including regulatory ambiguity, weak
policy enforcement, and limited institutional support, also restrict SMEs’ ability to align with circular practices.
The findings reinforce the Resource-Based View (RBV), emphasizing the importance of internal capabilities, and
Institutional Theory, highlighting the role of external pressures in shaping adoption. CSC adoption in Indian textile
SMEs is therefore not merely a technical issue but a multifaceted organizational and institutional challenge.
Addressing these interlinked barriers is essential for promoting sustainable practices, reducing environmental
impact, and enhancing long-term competitiveness. This study contributes empirical insights into sector-specific
challenges and lays a foundation for future research on strategies and interventions to support circular transitions in
emerging economies.
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