Analysis of circular supply chain indicators in Iran's electrical and electronic industries

The electrical and electronics industry is one of the fastest growing industries in the world, which, due to the production of large volumes of electronic waste and extensive resource consumption, requires a transition to a more sustainable model based on a circular economy that emphasizes waste reduction, resource reuse, and improved environmental efficiency. However, the successful implementation of a circular supply chain requires identifying and understanding the relationships between key drivers, barriers, and outcomes. In this study, using the fuzzy DEMATEL technique, the causal relationships between 75 indicators identified in the electrical and electronics industries of Iran have been analyzed. Key indicators have been extracted based on a literature review and previous studies and classified into three categories of drivers, barriers, and outcomes. The results of the fuzzy DEMATEL analysis show that creating a sustainable infrastructure, supporting managers and changing the business model, and designing a durable product as the most influential drivers play a fundamental role in facilitating the implementation of a circular economy. In contrast, technological limitations, initial investment costs, and the lack of performance measurement standards were identified as the most important barriers that prevent the full realization of this approach. Also, outcomes such as increased supply chain productivity, reduced raw material consumption, and reduced greenhouse gas emissions are among the most important positive outcomes of implementing this system. The findings of this study show that focusing on strengthening key drivers and reducing implementation barriers can facilitate the achievement of desired outcomes. Accordingly, it is suggested that policymakers and industrial managers should pave the way for the transition to a circular supply chain in this industry by investing in recycling infrastructure, establishing assessment standards, and developing financial and legal incentives.

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Extended Abstract

Introduction

The electrical and electronic industry is one of the fastest-growing sectors globally, producing a large volume of electronic waste (e-waste) and consuming substantial natural resources. This poses significant environmental and economic challenges, necessitating a shift toward a circular economy (CE) approach. A circular supply chain (CSC) focuses on reducing waste, reusing materials, and enhancing environmental sustainability by replacing the traditional “take-make-dispose” model with a closed-loop system. However, implementing CSCs requires identifying key drivers, addressing barriers, and understanding their impact on supply chain performance. Despite increasing interest in CE, its adoption in the electrical and electronic industries of developing countries, including Iran, remains limited due to technological, regulatory, and financial constraints.



This study aims to analyze the causal relationships among drivers, barriers, and outcomes in circular supply chains using the Fuzzy Decision-Making Trial and Evaluation Laboratory (Fuzzy DEMATEL) method. By examining the 75 key indicators extracted from previous literature and expert opinions, this research seeks to determine the most influential factors affecting CE implementation in Iran's electrical and electronic industries.



Methodology

This study employs a fuzzy DEMATEL approach, which is a multi-criteria decision-making (MCDM) method used to analyze causal relationships between complex variables. The research follows a descriptive-exploratory design with a qualitative-quantitative approach. Data collection was conducted through expert surveys, targeting professionals from industrial and academic sectors who specialize in circular economy and supply chain management. The 75 indicators were categorized into three main groups:



Drivers: Factors that facilitate CE adoption (e.g., infrastructure development, managerial support).

Barriers: Challenges that hinder implementation (e.g., high costs, lack of standards).

Outcomes: Expected benefits from CE adoption (e.g., reduced material consumption, improved efficiency).

Experts evaluated the degree of influence between each indicator using a linguistic scale converted into fuzzy triangular numbers. The fuzzy DEMATEL process was applied to generate a causal relationship matrix, identifying the most influential factors in Iran’s electrical and electronic industry.



Findings

The results indicate that drivers have the highest causal influence, suggesting that enhancing infrastructure, managerial commitment, and technological advancements is essential for CE adoption. Among the key drivers:



Infrastructure development (BD3) (importance score: 0.0394) plays a central role in facilitating CE practices.

Durable product design (CD7) (importance score: 0.0151) is crucial for increasing product lifespan and reducing material waste.

Performance assessment criteria (BD2) (importance score: 0.0154) improve transparency and efficiency in CE implementation.

Conversely, barriers were found to have a negative impact on adoption, with technological limitations (BB2), high investment costs (CB3), and lack of regulatory standards (BB1) identified as the most critical challenges.



Regarding outcomes, the study found that economic and environmental benefits are the most significant results of CE adoption, including:



Increased supply chain efficiency (O8) (importance score: 0.0227)

Reduced raw material consumption (O7) (importance score: 0.0174)

Lower greenhouse gas emissions (O4) (importance score: 0.0166)

The causal analysis suggests that focusing on drivers (especially infrastructure, managerial support, and technological progress) can mitigate barriers and maximize positive outcomes in CE implementation.



Conclusion and Practical Implications

The findings of this study emphasize the critical role of drivers in facilitating the transition to a circular economy (CE) in Iran’s electrical and electronic industries. Among the identified factors, infrastructure development (BD3), managerial commitment (CD6), and durable product design (CD7) emerged as the most influential drivers. These factors enable the implementation of efficient recycling systems, extended product life cycles, and sustainable supply chain practices. However, despite the economic and environmental potential of CE, several barriers hinder its adoption, including technological limitations (BB2), high investment costs (CB3), and lack of regulatory frameworks (BB1). Without addressing these challenges, the full-scale adoption of circular supply chains will remain limited.



The study also highlights key outcomes that can be achieved through CE implementation, particularly enhanced supply chain efficiency (O8), reduced raw material consumption (O7), and lower greenhouse gas emissions (O4). These outcomes underline the long-term benefits of transitioning from a linear "take-make-dispose" model to a circular and regenerative system. The causal analysis conducted through fuzzy DEMATEL confirms that drivers function as the root causes, while barriers act as constraints, and outcomes represent the ultimate benefits of CE adoption. A strategic focus on strengthening key drivers can help mitigate barriers and maximize positive outcomes.



Policy and Managerial Recommendations

Investment in Recycling Infrastructure and Reverse Logistics



Developing specialized e-waste recycling centers and improving waste collection systems to increase material recovery rates.

Expanding logistics networks for product return, refurbishment, and remanufacturing.

Regulatory and Financial Incentives





Technological Advancements and Industry Collaboration



Investing in R&D for advanced recycling technologies to improve material recovery efficiency.

Encouraging collaboration between universities, research institutions, and industry stakeholders for innovation in circular product design.

Public Awareness and Consumer Engagement

Launching educational campaigns to inform consumers about the benefits of returning and recycling electronic products.

Creating reward programs for consumers who participate in e-waste collection initiatives.

Final Thoughts

This research provides a comprehensive framework for understanding the causal relationships between drivers, barriers, and outcomes in circular supply chains. The results demonstrate that prioritizing infrastructure development, regulatory support, and technological advancements can facilitate the successful implementation of CE. Addressing systemic barriers through policy reforms, financial incentives, and public-private partnerships will be crucial in accelerating this transition. The study offers valuable insights for policymakers, industry leaders, and researchers aiming to design sustainable supply chain models that align with CE principles.

By adopting a strategic and holistic approach, Iran’s electrical and electronic industry can reduce waste generation, enhance resource efficiency, and contribute to global sustainability goals, positioning itself as a leader in CE implementation within developing economies.