Exploring circular economy strategies of SMEs in the Italian tanning cluster of Arzignano: A multilevel perspective of reactive and proactive strategies

While the Circular Economy predominantly affects large companies and multinationals, its impact on Small and Medium-sized Enterprises (SMEs) is an emerging research area. This research aimed to unfold the Circular Economy strategies implemented by SMEs within an industrial cluster context. Ten companies from the Italian tanning cluster of Arzignano were selected as case studies. Thematic analysis, pattern-matching, and multi-value Qualitative Comparative Analysis techniques were used to analyze primary and secondary data. Main findings revealed that CE strategies taken by the studied companies were characterized by the economic and efficiency benefits provided, such as resource-saving, waste management, energy use reduction, and materials selection for further recycling. SMEs' management is targeting compliance with environmental regulations/certifications, market pressures, and cost-benefit assessments, evidencing an adaptive behavior to external exigencies. Novel findings came from the meso level, such as a 'symbiotic circularity' strategy taken by two SMEs and their value chain for co-production, and the chain actions related to recycling, remanufacturing, and reusing wasted products by partner companies. A cascade chain of interdependent actions toward Circular Economy practices was also identified within the cluster level. Reactive and proactive Circular Economy strategies were identified in a multilevel framework.