Open Access Article SciPap-2007
Exploring Pathways to Circular Economy Practices in Estonian Manufacturing SMEs: A Fuzzy-Set QCA Approach on Stakeholder Pressure and Collaboration
by Tarlan Ahmadov 1,* iD icon, Wolfgang Dieter Gerstlberger 2 iD icon and Khusbu Rahman 3 iD icon

1 School of Business and Governance, Tallinn University of Technology, Ehitajate tee 5,, Tallinn 19086, Estonia

2 School of Business and Governance, Tallinn University of Technology, Tallinn University of Technoloyg, Ehitajate tee 5, Tallinn 19086, Estonia

3 College of Business and Analytics, Southern Illinois University, 1025 Lincoln Dr, Carbondale, IL 62901, Carbondale 46805, United States of America

* Authors to whom correspondence should be addressed.

Abstract: 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 supply-side 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.

Keywords: Small And Medium Enterprises, Circular Economy Practices, Stakeholder Pressure, Collaboration, Fuzzy-Set Qualitative Comparative Analysis

JEL classification:   L25 - Firm Performance: Size, Diversification, and Scope,  M1 - Business Administration,   M21 - Business Economics,   Q01 - Sustainable Development

SciPap 2024, 32(1), 2007; https://doi.org/10.46585/sp32012007

Received: 24 June 2024 / Revised: 19 August 2024 / Accepted: 20 August 2024 / Published: 4 September 2024