Unraveling the Roles of Supply Chain Management and Resilience in Advancing Circular Economy: Empirical Evidence Using PLS‐SEM

Abstract

In recent years, environmental concerns have reached critical levels, emphasizing e‐waste management as essential to mitigating resource depletion. However, existing literature lacks frameworks identifying the antecedents of a circular economy. Additionally, strong theoretical evidence suggests that supply chain risk management and resilience can support circular economy implementation, though empirical validation remains scarce. This study addresses two key research questions: (RQ1) Can supply chain risk management and resilience be considered antecedents of a circular economy? (RQ2) What empirically validated configurations of these antecedents enable a circular economy? To answer these questions, we conducted an empirical validation using partial least squares structural equation modeling (PLS‐SEM) based on survey data collected from 334 professionals in Brazil. The results highlight that reverse logistics, closed‐loop supply chains, supply chain risk management, supply chain resilience, and smart cities act as key enablers of the circular economy. This study contributes to the literature by (i) empirically validating a circular economy framework and (ii) detailing the proportion each construct contributes to the circular economy (factor loadings). To the best of our knowledge, this is the first study to empirically validate a framework that jointly considers supply chain risk management, resilience, and the circular economy.