Strategic Pathways for Circular Economy Implementation in Small and Medium Enterprises: A Theoretical Integration Approach

Abstract

This study  aims  to systematically map the literature on circular economy (CE) applications in small and medium enterprises (SMEs) and to propose a conceptual framework for sustainability strategies. The  method  involved retrieving a dataset of 510 publications from the Scopus database and analyzing it with the Bibliometrix package in RStudio, using bibliometric techniques to assess publication performance, prolific authors, institutional contributions, collaboration patterns, and thematic structures, followed by thematic cluster mapping integrated with strategic management perspectives (environmental scanning, strategy formulation, implementation, and evaluation) underpinned by institutional theory, the technologyorganization-environment framework, and dynamic capabilities theory. The  results  reveal a significant increase in CE‑related SME research in recent years, with contributions concentrated in specific institutions and research networks, and identify three dominant research directions: digital technologies enabling circular practices, environmental policies driving adoption, and the design of sustainable business models, underscoring the importance of technology-enabled transformation, regulatory alignment, and organizational readiness in SME transitions. The  contributions  of this study lie in providing a strategic roadmap that integrates bibliometric insights with management theory, demonstrating how SMEs can transform challenges such as capital constraints and limited infrastructure into strategic opportunities through capability development and stakeholder collaboration, while offering practical implications for SMEs, policymakers, and academics to design evidence-based sustainability strategies that enhance competitiveness and advance global sustainability goals.