Transitioning to circular business models in developing countries: a systematic literature review of barriers, enablers, and future directions

Abstract The concept of the circular economy (CE) is gaining attention in developing countries as they cope with global challenges such as resource depletion, climate change, and environmental degradation. However, the adoption of CE principles at the business model level in these countries is const...

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Main Authors: Ervisa Ndoka, Genc Alimehmeti, Kalterina Shulla, Bernd-Friedrich Voigt
Format: Article
Language:English
Published: Springer 2025-07-01
Series:Discover Sustainability
Subjects:
Online Access:https://doi.org/10.1007/s43621-025-01339-x
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author Ervisa Ndoka
Genc Alimehmeti
Kalterina Shulla
Bernd-Friedrich Voigt
author_facet Ervisa Ndoka
Genc Alimehmeti
Kalterina Shulla
Bernd-Friedrich Voigt
author_sort Ervisa Ndoka
collection DOAJ
description Abstract The concept of the circular economy (CE) is gaining attention in developing countries as they cope with global challenges such as resource depletion, climate change, and environmental degradation. However, the adoption of CE principles at the business model level in these countries is constrained by various obstacles. This systematic literature review of 107 articles from Scopus and Web of Science (WoS) examines study results on circular business models within developing economies to establish a comprehensive framework for researchers, practitioners, and policymakers. We identify proof of obstacles such as financial constraints, regulatory and institutional challenges, technological limitations, market and supply chain issues, organizational hurdles, and cultural resistance. Among successful practices, drivers, and enablers that facilitate transition from linear to circular are highlighted: policy support, innovation, stakeholder engagement, and capacity building. A research gap is identified, especially in the health sector, food supply chains, and plastic packaging manufacturers. Due to the differences in terms of methodology, context, and topic of the reviewed research, the findings cannot be generalized. Nevertheless, by synthesizing current knowledge, our study aims to offer valuable insights to guide businesses in adopting circular models and policymakers in creating supportive environments, contributing to sustainable development in emerging economies.
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publishDate 2025-07-01
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series Discover Sustainability
spelling doaj-art-e7624855d37b4f3886d2c76fc0fce0db2025-08-20T03:03:19ZengSpringerDiscover Sustainability2662-99842025-07-016112810.1007/s43621-025-01339-xTransitioning to circular business models in developing countries: a systematic literature review of barriers, enablers, and future directionsErvisa Ndoka0Genc Alimehmeti1Kalterina Shulla2Bernd-Friedrich Voigt3Department of Management, Faculty of Economics, University of TiranaDepartment of Management, Faculty of Economics, University of TiranaBerlin School of Business and InnovationSouth Westphalia University of Applied SciencesAbstract The concept of the circular economy (CE) is gaining attention in developing countries as they cope with global challenges such as resource depletion, climate change, and environmental degradation. However, the adoption of CE principles at the business model level in these countries is constrained by various obstacles. This systematic literature review of 107 articles from Scopus and Web of Science (WoS) examines study results on circular business models within developing economies to establish a comprehensive framework for researchers, practitioners, and policymakers. We identify proof of obstacles such as financial constraints, regulatory and institutional challenges, technological limitations, market and supply chain issues, organizational hurdles, and cultural resistance. Among successful practices, drivers, and enablers that facilitate transition from linear to circular are highlighted: policy support, innovation, stakeholder engagement, and capacity building. A research gap is identified, especially in the health sector, food supply chains, and plastic packaging manufacturers. Due to the differences in terms of methodology, context, and topic of the reviewed research, the findings cannot be generalized. Nevertheless, by synthesizing current knowledge, our study aims to offer valuable insights to guide businesses in adopting circular models and policymakers in creating supportive environments, contributing to sustainable development in emerging economies.https://doi.org/10.1007/s43621-025-01339-xCircular economyCircular business modelsDeveloping countriesLiterature review
spellingShingle Ervisa Ndoka
Genc Alimehmeti
Kalterina Shulla
Bernd-Friedrich Voigt
Transitioning to circular business models in developing countries: a systematic literature review of barriers, enablers, and future directions
Discover Sustainability
Circular economy
Circular business models
Developing countries
Literature review
title Transitioning to circular business models in developing countries: a systematic literature review of barriers, enablers, and future directions
title_full Transitioning to circular business models in developing countries: a systematic literature review of barriers, enablers, and future directions
title_fullStr Transitioning to circular business models in developing countries: a systematic literature review of barriers, enablers, and future directions
title_full_unstemmed Transitioning to circular business models in developing countries: a systematic literature review of barriers, enablers, and future directions
title_short Transitioning to circular business models in developing countries: a systematic literature review of barriers, enablers, and future directions
title_sort transitioning to circular business models in developing countries a systematic literature review of barriers enablers and future directions
topic Circular economy
Circular business models
Developing countries
Literature review
url https://doi.org/10.1007/s43621-025-01339-x
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