Exploring Pathways to Circular Economy Practices in Estonian Manufacturing SMEs: A Fuzzy-Set QCA Approach on Stakeholder Pressure and Collaboration

In response to global imperatives for sustainability, particularly within the framework of the circular economy (CE), this study examines the adoption of CE practices among manufacturing Small and Medium Enterprises (SMEs) in Estonia. Based on a sample of 78 responses using complete case analysis, this research aims to uncover the configurations of stakeholder pressure (business and social) and collaboration (supply and demand-side) pathways that facilitate successful CE adoption. Drawing on Fuzzy-set Qualitative Comparative Analysis (fsQCA) and Configurational Theory, the study explores how interactions among these factors influence the adoption of CE practices. The empirical investigation, grounded in the Estonian context, reveals three key pathways driving CE adoption: demand-side collaboration, social pressure without direct business pressure, and the combination of business pressure with supplyside collaboration. The findings not only contribute theoretically by advancing configurational approaches in CE research but also offer practical implications for SME managers seeking to adopt CE practice.