Circular Economy in Malaysia

Modeling the principal success factors for attaining systemic circularity in the building construction industry: An international survey of circular economy experts

Achieving net-zero emissions by 2050 will require tackling both energy-related and non-energy-related GHG emissions, which can be achieved through the transition to a circular economy (CE). The focus of climate change crisis reversal has been on the energy-related continuum over the years through promoting renewable energy uptake and efficiency in energy use. Clean energy transition and efficiency gains in energy use alone will not be sufficient to achieve net-zero emissions in 2050 without paying attention to non-energy-related CO2 emissions. This study systematically reviews the CE literature across different themes, sectors, approaches, and tools to identify accelerators in transitioning to a CE. The study aims to understand and explore how technology, finance, ecosystem, and behavioral studies in the CE paradigm can be integrated as a decision-making tool for CE transition. The material analysis was carried out by identifying the main characteristics of the literature on CE implementation in the agriculture, industry, energy, water, and tourism sectors. Results of the literature survey are synthesized to engender clarity in the literature and identify research gaps to inform future research. Findings show that many studies focused on technology as an accelerator for CE transition, and more studies are needed regarding the CE ecosystem, financing, and behavioral aspects. Also, results show that CE principles are applied at the micro-, meso-, and macro- (national, regional, and global) levels across sectors with the dominance of the industrial sector. The agriculture, water, and energy sectors are at the initial stages of implementation. Additionally, the use of carbon capture and utilization or storage, conceptualized as a circular carbon economy, needs attention in tackling CE implementation in the energy sector, especially in hydrocarbon-endowed economies. The major implication of these findings is that for CE to contribute to accelerated net-zero emission by 2050, coordinated policies should be promoted to influence the amount of financing available to innovative circular businesses and technologies within an ecosystem that engenders behavioral change towards circularity.

PurposeThis study aims to highlight the impacts of a rapidly growing automobile industry on the environment and how implementation of Circular Economy (CE) principles and strategies can help us in improving its sustainability without compromising on our existing economic models.Design/methodology/approachIncrease in spending capacity, improvements in technology and decrease in the prices have catapulted automobile demand over the last few decades. Harmful emissions and waste generation during the entire life cycle of these complex machines need to be addressed in an urgent manner globally. Implementation of CE principles and strategies which are based on promoting a pivotal balance between environment, economy and the society can lead to minimize economic and environmental impact leading to better results for all the stakeholders.FindingsCarbon footprint or environmental emissions during different stages of an automobile life cycle can be minimized using CE principles and strategies without compromising on the existing economic models. Government legislation and keen participation of Original Equipment Manufacturers (OEMs) and automobile manufacturers can drive the automobile industry toward sustainability despite growing consumption.Originality/valueThe literature review has been done with a fresh perspective to combine environmental sustainability with CE. This is a literature review of prior work done in this domain to explore the possibility of further intervention in this domain.

This study investigates the influence of Green Organizational Citizenship Behavior (GOCB) and Circular Economy (CE) implementation on the success of Green Accounting (GA) initiatives, mediated by Cultural Readiness (CR) among employees of public accounting firms in West Java. Using a quantitative approach, data were collected from 135 respondents via a Likert scale (1–5) and analyzed using Structural Equation Modeling – Partial Least Squares (SEM-PLS) version 3. The results reveal that both GOCB and CE implementation positively and significantly influence CR, which in turn significantly enhances GA success. Moreover, CR partially mediates the relationships between GOCB, CE implementation, and GA success, highlighting the critical role of organizational culture in supporting sustainability initiatives. These findings suggest that fostering environmentally responsible behaviors, embedding circular economy principles, and cultivating cultural readiness are essential for achieving effective Green Accounting practices in public accounting firms.

The construction sector plays a significant role in resource consumption and waste generation, making the transition to a circular economy (CE) imperative for sustainability in this sector. This paper focuses on developing a framework for implementing CE principles in the construction sector, guided by expert opinions and insights. The main objective of this study was to enhance existing theoretical frameworks by incorporating feedback from construction experts to improve practical utility and applicability in real-world construction practices. By addressing key areas for enhancement, the revised framework facilitates the adoption of CE practices throughout the asset lifecycle, considering buildings from cradle to cradle. This research’s methodology involved a comprehensive literature review to identify gaps in current frameworks related to CE implementation in the construction sector. Unstructured interviews with twenty construction experts were conducted to gather insights and recommendations for framework improvement. Data analysis highlighted the importance of integrating CE principles at various stages of the asset lifecycle, such as design, construction, and end-of-life phases. The key recommendations from experts include incorporating sustainable approaches, aligning with BIM models, and considering whole-life design aspects to promote circularity in the construction sector. By incorporating expert feedback and industry insights, the framework aims to guide practitioners toward more sustainable and resource-efficient construction practices, contributing to the broader field of CE implementation in the built environment.

Purpose The exponential growth of the construction sector exerts considerable pressure on the environment, and the circular economy (CE) concept has recently gained traction as a means of alleviating such environmental issues. In order to propose solutions to the phenomenon of contractors being hesitant to participate in CE implementation in developing countries, this paper aims to comprehensively explore the enabling factors that motivate contractors to implement CE. Design/methodology/approach This study is based on the push-pull-mooring (PPM) theory and extends it by introducing information provision (IP) as a trigger on contractors’ intrinsic subjective initiative states on CE implementation. The study considers what and how positive pull, negative push and neutral mooring factors influence the contractors’ CE transition. The framework was validated by questionnaires collected from contractors in China, and the data were analyzed using the structural equation modeling method. Findings The findings indicate that all factors from the PPM framework exert a positive influence on CE intention, with push factors demonstrating a greater average impact. Furthermore, this study confirms the influence of the IP on contractors’ CE intentions by influencing their intrinsic status. The impact of the IP is most pronounced in terms of contractors’ perceived usefulness and environmental concerns. Originality/value This study contributes to the existing body of knowledge in the CE transition studies by extending the PPM theory into the construction industry through the lenses of contractors in developing countries. The results highlight the trigger impacts of the IP on contractors’ psychological status regarding CE transition. Furthermore, it offers insights into government management in the CE transition by providing the government with novel approaches to facilitate the CE transition in the construction sector.

Governments, companies and citizens around the world consider necessary to adopt a new circular economy (CE) model that allows solving the planet’s environmental challenges and guaranteeing sustainable economic growth. Europe advocates this philosophy, but there is no widely accepted index to measure CE implementation at a macro level. This paper proposes a new index based on principal component analysis for European Union countries that use all information available without losing any information by the dimensionality reduction and consider objective weights based on the percentage of variance that each one retains. Moreover, we develop a disaggregated analysis considering the CE dimensions set out in the ‘CE monitoring framework’, allowing a more comprehensive analysis than when using a single indicator of CE implementation. This method is also used to build an index of the degree of achievement of the sustainable development goals (SDGs) to see how they relate to the CE; the relationships between CE dimensions; and between SDGs. The results by geographical areas reveal a higher level of CE implementation in western European and EU-15 countries, with Luxembourg, Austria, Denmark, the Netherlands and Belgium alternately holding the top positions depending on the CE dimension considered. Therefore, the new European countries and the countries in the east must encourage measures to improve the implementation of the economy. In addition, there is a positive, strong and significant relationship with SDGs 8, 9 and 11, with both the overall CE implementation index and the disaggregated indices, and a negative one with 7 and 15.

Circular economy is a key strategy to achieve corporate sustainability. However, so far, most firms are unable to translate the concept of circular economy into their corporate strategies, business models, and operations. Some scholars have argued that firms need to develop new (and dynamic) capabilities for circular economy implementation. Yet there is a little discussion on how firms can develop such capabilities. Notably, there is a paucity of research on specific skills, processes, and organizational activities (microfoundations of dynamic capabilities) that may facilitate circular economy implementation. To address this knowledge gap, using a multiple‐case studies approach, we explore microfoundations of dynamic capabilities in successful circular economy business cases. Our findings indicate that dynamic capabilities positively contribute to circular economy implementation. Our case studies show that case firms identified circular economy opportunities by using four microfoundations of sensing capability. Further, case firms acted on the identified opportunities by using simultaneously three microfoundations of seizing capability and four microfoundations of reconfiguring capability. This paper contributes to the literature on the relations between dynamic capabilities and corporate sustainability by providing insights on how sensing, seizing, and reconfiguring dynamic capabilities act in successful operationalization of circular economy strategies.

PurposeThis study attempts to explore the association between circular economy implementation and sustainability performance for the textile industry in Vietnam. This study also investigated the influences of corporate green commitment on implementing circular economy practices as well as the moderating effect of corporate green efficacy on the relationship between corporate green commitment and circular economy implementation.Design/methodology/approachThe circular economy practices in the study were divided into three categories: internal environmental management, eco-design, and investment recovery. Sustainability performance consists of economic performance, environmental performance, and social performance. A questionnaire survey on Vietnam’s textile companies was conducted in the study to test the proposed research framework.FindingsResearch findings reveal that corporate green commitment significantly influences the implementation of circular economy practices, and circular economy practices have significantly positive influences on sustainability performance. Corporate green efficacy significantly moderates the association between corporate green commitment and circular economy implementation.Originality/valueAs one of the first empirical studies focusing on the circular economy issues in Vietnam’s textile industry, this study extended the understanding of the antecedents and consequences of implementing circular economy practices. The research results are theoretically and practically meaningful.

PurposeTotal Productive Maintenance (TPM) could act as a practical approach to offer sustainability deliverables in manufacturing firms aligning with the natural resource-based view (NRBV) theory's strategic capabilities: pollution prevention, product stewardship and sustainable development. Also, the emergence of Blockchain Technology (BCT) and Circular Economy (CE) are proven to deliver sustainable outcomes in the past literature. Therefore, the present research examines the relationship between BCT and CE and TPM's direct and mediation effect through the lens of NRBV theory.Design/methodology/approachThe current study proposes a conceptual framework to examine the relationship between BCT, CE and TPM and validates the framework through the Partial Least Squares Structural Equation Modeling. Responses from 316 Indian manufacturing firms were collected to conduct the analysis.FindingsThe investigation outcomes indicate that BCT positively influences CE and TPM and that TPM has a significant positive impact on CE under the premises of NRBV theory. The results also suggest that TPM partially mediates the relationship between BCT and CE.Research limitations/implicationsThis research fills a gap in the literature by investigating the effect of BCT and TPM on CE within the framework of the NRBV theory. It explores the link between BCT, TPM and CE under the NRBV theory's strategic capabilities and TPM mediation.Practical implicationsThe positive influence of TPM and BCT on CE could initiate the amalgamation of BCT-TPM, improving the longevity of production equipment and products and speeding up the implementation of CE practices.Originality/valueThis research fills a gap in the literature by investigating the effect of BCT and TPM on CE within the framework of the NRBV theory. It explores the link between BCT, TPM and CE under the NRBV theory's strategic capabilities along with TPM mediation.

ABSTRACTWater and wastewater sector actively participates in circular economy (CE) transition; however, there is no official CE monitoring framework to measure the level of progress toward the CE model in this sector. The paper presents a set of environmental indicators that could support water and wastewater treatment companies in the assessment of CE implementation. CE indicators were grouped into six areas of CE implementation in this sector: reduction—prevention of wastewater generation; reclamation (removal)—contamination removal from water and wastewater; reuse—water reuse for nonpotable usage; recycling—water reuse for potable usage; recovery—recovery of raw materials and energy from water‐based waste; and rethink—rethinking use of raw materials. The following indicators were proposed in specific CE areas: reduction—tap water consumption reduction, wastewater generation reduction, waste reduction, sewage sludge generation reduction, and water footprint; reclamation—pollutants removal from water and pollutants removal from wastewater; reuse—water reuse from wastewater for nonpotable usage and recycling of technical water for nonpotable usage; recycling—water reuse from wastewater for potable usage; recovery—raw materials recovery, bio‐based fertilizers, energy recovery, processing of sewage sludge, composting of sewage sludge, biogas production, and processing of ashes; and rethink—CE technologies, life cycle assessment reports, CE products, and CE business models, industrial symbiosis, and carbon footprint. The proposed CE indicators can be used not only to assess the level of transformation toward CE but also to support further policies on strategic CE initiatives in organizations operating in the water and wastewater sector. Moreover, they could support the strategic planning of further CE initiatives in organizations. The proposed list of CE indicators is not closed because in the coming years, more and more CE solutions are expected to be developed and implemented in water and wastewater treatment plant companies, involving also economic and social aspects, in order to support the sustainable development.

This article aims to assess the impact of customer pressure, environmental uncertainty and government support on the implementation of circular economy and the implementation of the circular economy model impacts sustainable development through economic efficiency, social efficiency, and environmental efficiency in Vietnamese small and medium enterprises.For small and medium enterprises in Vietnam, this research is necessary and is the basis for preserving resources in Vietnam and reducing costs for small and medium enterprises, open new business opportunities, build a generation of innovative businesses, and create jobs, integration opportunities, and social cohesion.Data was collected by sending questionnaires to business managers of 250 small and medium enterprises in Vietnam and the number of votes meeting the requirements for inclusion in analysis was 208.Data were analyzed by applying the PLS-SEM model through SmartPLS 3 software.Research results have shown that customer pressure and support from the government have positive impacts on the implementation of circular economy in Vietnamese small and medium enterprises and the implementation of circular economy has a positive impact on economic efficiency, social efficiency, and environmental efficiency.

The concept of circular economy (CE) is proposed to lead humanity toward a sustainable future. Public authorities increasingly build on CE narratives. The progress of private sector actors is key to enable more circular resource flows. Still, the world falls far short from becoming circular and large‐scale implementation of CE in actual problem–solution spaces is scarce. This study sheds light into the external strategies of circular start‐ups (CSUs) in building an adequate socio‐institutional embedding for circular business models (CBMs) and puts the findings in the context of CE and sustainability transformations research. CSUs are a distinct group of CE‐oriented actors that build and implement CBMs wholistically and from scratch. Thereby, they can directly and indirectly contribute to the creation of circular innovation systems. This study defines the common CE mission of CSUs, sets it in context of respective socio‐political CE missions, and scrutinizes the roles that CSUs adopt to drive systemic CE implementation. We observe that CSUs’ strategic interventions go further than only novelty creation. This article proposes and elaborates on four roles that CSUs adopt: conveners , reinforcers , pioneers , and champions . The roles differ according to the CSU business models, stakeholders, the institutional elements that are addressed, as well as the directionalities that CSUs set. The findings are discussed considering the governance, policies, and strategic management of various directionalities in which CE innovation develops. It sheds light on inadequacies and limitations for bottom‐up CE innovation in existing norms and cognition, policy, and network governance.

How do scholars approach the circular economy? A systematic literature review

Purpose Although the crucial role of Industry 4.0 (Agri 4.0) is well documented in innovation literature, its influence on innovation performance (IP) and how circular economy (CE) practices influence the Industry 4.0–IP relationship remains underexplored. This paper, therefore, examines the mediating role of CE in the direct link between Industry 4.0 and IP among agribusiness firms in emerging economies. Design/methodology/approach Drawing from the resource-based view (RBV), a framework of four hypotheses was proposed and validated using survey data from the agribusiness firms in Ghana. Data were gathered from 326 agribusiness firms in Ghana. The model was validated by partial least squares-structural equation modeling (PLS-SEM). Findings The results showed a direct significant relationship between both Industry 4.0, circular economy capabilities and IP. The findings further revealed that the influence of Industry 4.0 on IP is not just a bivariate relationship but also mediated through CE. The outcome of this study provides evidence that though Industry 4.0 remains crucial to driving IP, superior IP can be achieved through CE implementation. Research limitations/implications Despite the relevance of this study, it has some limitations that should be acknowledged. The research was conducted only in Ghana, limiting the generalizability of findings to other emerging economies with different technological infrastructures, agricultural practices and regulatory environments. Originality/value The outcome of this study offers an important extension to the frontiers of innovation literature by examining how IP in the agribusiness space can be enhanced through Industry 4.0 and CE implementation, which is quite rare.