A structural analysis of the influential factors affecting the implementation of circular supply chain management in South Korea

Abstract

Global businesses seek sustainable practices to advance resource efficiency and mitigate environmental effects; thus, the adoption of circular supply chain management is becoming increasingly important. Practical research on circular supply chain management is particularly vital, as it offers valuable insights into effectively integrating these practices into business operations. This study employs a qualitative approach using Interpretive Structural Modeling and Matrice d’Impacts Croisés Multiplication Appliquée à un Classement to explore the core determinants affecting circular supply chain management through the lens of the Korean logistics market. The Interpretive Structural Modeling method clarifies the hierarchical relationships among various factors, while Matrice d’Impacts Croisés Multiplication Appliquée à un Classement is used to analyze their driving forces and dependent relationships. The study identifies ten key elements, which are grouped into three categories: operational core factors, mobilization and attraction factors, and foundational support factors. The findings reveal that lower consumer costs, recycled raw material production, and energy conservation technology serve as core determinants, while factors such as public awareness, government regulations, and funding programs act as critical enablers for circular supply chain management adoption. This study's findings provide decision-makers and policymakers with strategic guidance for developing effective policies and practical solutions to facilitate the shift toward circular supply chains, thereby improving the efficiency and sustainability of circular supply chain management.