Building resilient circular economy supply chains in the fashion and textile industry: A systematic literature review

Abstract

This systematic literature review is an examination of the intersection of circular economy practices and supply chain resilience (SCRes) within the fashion and textile industry. The study is an investigation of how circular economy implementation may enhance SCRes capabilities, identifying the mechanisms through which circular practices are proposed to generate operational advantages in an industry characterized by complex global networks and heightened disruption exposure. Following Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) 2020 guidelines, peer-reviewed literature from Scopus and Web of Science databases spanning 2015–2024 is synthesized. From 847 initial records, 67 studies were included, following rigorous screening procedures. A multitheoretical lens is employed, integrating dynamic capabilities theory, the resource-based view, and SCRes theory to examine circular economy–resilience linkages. Five primary circular economy practice categories in fashion or textile supply chains are identified: material recovery systems, design for circularity, collaborative consumption models, reverse logistics networks, and digital traceability infrastructure. These practices are proposed to support resilience capabilities through diversified material sourcing, enhanced supply chain visibility, strengthened interorganizational relationships, operational flexibility, and reduced resource dependency. The analysis suggests that circular economy implementation may create dual-purpose resources that potentially advance sustainability objectives and contribute to disruption absorption capacity. The review is limited to English-language peer-reviewed publications and might underrepresent practitioner-driven innovations. The nascent integration of circular economy and resilience concepts in fashion or textile contexts means that empirical validation of proposed linkages remains limited. In future research, longitudinal designs should be employed to capture dynamic capability development through circular transitions. Fashion and textile firms can strategically deploy circular economy practices to build SCRes while achieving sustainability targets. Managers should prioritize investments in textile-to-textile recycling infrastructure, collaborative supplier relationships for reverse material flows, and digital product passports that enhance visibility across forward and reverse supply chains. This review provides a comprehensive systematic synthesis of circular economy–resilience linkages specific to fashion and textile supply chains. It develops a novel conceptual framework demonstrating how circular practices build resilience capabilities through resource reconfiguration, proposes a typology of circular supply chain configurations, and establishes a theory-driven research agenda for this emerging interdisciplinary domain.