Exploring pathways for circular supply chain in SMEs: the role of trust, information sharing and organizational adaptability

Abstract

Purpose Circular supply chains (CSCs) are critical for addressing global environmental challenges. However, small and medium enterprises (SMEs) face significant barriers in transitioning to sustainable business models, primarily due to limited resources and stakeholder trust. While existing studies acknowledge these challenges, there is a gap in understanding the configurations of factors that enable SMEs to achieve high CSC levels. This study examines key factors derived from organizational information processing theory (OIPT) and swift trust theory (STT), such as trust, information sharing, adaptability, risk perception, collaborative learning and communication channels that can drive CSC adoption in SMEs. Design/methodology/approach The study focuses on 237 SMEs in Ghana and employs fuzzy set qualitative comparative analysis (fs/QCA) to identify the determinants of CSC adoption. This approach enables the exploration of multiple pathways leading to high levels of CSC, grounded in theoretical insights from OIPT and STT. Findings The findings reveal three distinct pathways to high CSC adoption, with organizational adaptability and effective communication channels identified as core conditions across all successful configurations. These results demonstrate the critical role of flexible organizational structures and robust communication mechanisms in enabling SMEs to overcome barriers and achieve CSC integration. Originality/value This is the first study to integrate OIPT and STT theories within the context of circular supply chain research, offering a novel perspective on their interaction. The study contributes to the literature by presenting a holistic understanding of CSC dynamics and offering practical and theoretical guidance for fostering CSC success among SMEs.