SMEs on the way to a circular economy: insights from a multi-perspective review

The transition to a circular economy (CE) has garnered widespread attention as a solution to address economic, environmental, and social challenges. While large enterprises and policymakers have made steps in adopting CE practices, small and medium-sized enterprises (SMEs) face unique challenges due to limited resources and expertise. Understanding the multi-level perspective (MLP) is essential for SMEs to successfully transition to a CE, as it considers factors at the micro, meso, and macro levels. However, current research often focuses on single levels, necessitating a comprehensive understanding of the phenomenon through systematic research. To address this need, this study conducts a systematic literature review (SLR) using the MLP framework to analyse existing research on SMEs' transition to a CE. The study aims to identify macro-, meso-, and micro-level factors, actors, and mechanisms influencing the transition process. The SLR contributes to academic understanding by developing a conceptual model that elucidates the dynamics of the circular transition process within SMEs. Additionally, it provides practical recommendations to support SMEs in navigating the transition successfully. The adoption of the MLP framework empowers SMEs, policymakers, industry associations, and consumers to play their roles effectively in driving the CE transition. While the study acknowledges certain limitations, it opens avenues for future research and enhancement of CE practices in SMEs.