Modeling Critical Drivers of Circular Economy Transition Using Fuzzy ISM and Fuzzy MICMAC Analysis

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Dwi Atmanto, Asep Marfu, Agung Purwanto, Arita Marini, Nadiroh, Achmad Husen, Heri Sapari Kahpi, Septantri Shinta Wulandari, Anna Sofia Atichasari, Esti Suntari

2026 Circular Economy and Sustainability Vol. 6 Issue 3 Article Cited by 0 SDG 12SDG 17 Quartile

Abstract

The transition from linear production systems to a circular economy requires a systemic understanding of the drivers that enable sustainable resource management and closed-loop production. However, existing studies often examine these drivers individually, providing limited insight into their structural relationships within complex socio-economic systems. This study aims to identify and analyze the hierarchical relationships among key drivers of circular economy implementation using a Fuzzy Interpretive Structural Modeling (Fuzzy-ISM) approach integrated with MICMAC analysis. Data were collected through a Delphi process involving ten experts in sustainability, circular economy, and environmental management. The analysis identified ten critical drivers, including government regulation, financial incentives, technological innovation, recycling infrastructure, circular business models, stakeholder collaboration, environmental awareness, supply chain integration, institutional support, and digital technology adoption. The results reveal that financial incentives, supply chain integration, and digital technology adoption function as foundational drivers with high driving power and relatively low dependence, indicating their role as key enablers of circular economy transformation. Meanwhile, variables such as government regulation, technological innovation, recycling infrastructure, circular business models, stakeholder collaboration, environmental awareness, and institutional support exhibit high levels of interdependence, forming a network of linkage variables that shape the operational dynamics of circular systems. These findings highlight that circular economy transitions are driven by interconnected institutional, technological, economic, and social factors rather than by isolated policy or technological interventions. The study contributes to sustainability research by providing a systemic framework for understanding circular economy drivers and offers strategic insights for policymakers and industry practitioners seeking to accelerate circular economy adoption. © The Author(s), under exclusive licence to Springer Nature Switzerland AG 2026.

Affiliations

Universitas Negeri Jakarta, Jakarta, Indonesia; Universitas Banten, Serang, Indonesia; Universitas Primagraha, Serang, Indonesia; Universitas Islam Syekh-Yusuf, Tangerang, Indonesia; Universitas Pamulang, Tangerang Selatan, Indonesia

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