Engaging the Loop: A Conceptual Framework Linking Stakeholder Engagement to Circular Economy Adoption for Waste Reduction
Abstract
This study addresses persistent challenges in municipal solid waste systems, namely low diversion and uneven resource recovery, by examining how stakeholder engagement (with communities, suppliers, and regulators) supports the adoption of circular economy (CE) practices and how operational change, often termed green process innovation, drives measurable waste outcomes. The central hypothesis is that CE adoption mediates the relationship between stakeholder engagement and waste reduction. Using a narrative review oriented to concept development, records were retrieved from the Scopus database (articles and reviews, 2000–2025, English) with a reproducible query targeting stakeholder engagement, CE, policy/strategy, and organizational settings. After de-duplication, titles/abstracts and full texts were screened for relevance to engagement, CE adoption, and waste outcomes or proxies; data were extracted into a concept-centric matrix and synthesized via integrative thematic analysis. Primary outcomes were diversion rate, secondary material yield, and contamination reduction. The synthesis reveals two pathways: (1) a direct association whereby engagement mobilizes source separation, social acceptance of reuse/repair, and take-back participation; and (2) a stronger, mediated pathway in which engagement enables CE adoption, such as design for disassembly, industrial symbiosis, organics valorization, and optimized recycling–recovery portfolios that directly improves diversion and recovery. Governance capacity, policy coherence, and digital readiness strengthen these effects. Overall, stakeholder engagement improves waste outcomes primarily by deepening and routinizing CE adoption, with supportive governance and policy environments amplifying gains. The resulting framework offers testable propositions and practical guidance for municipalities and firms seeking scalable circular outcomes.
Downloads
References
Adedayo-Ojo, A. A., Shad, M. K., & Poon, W. C. (2025). Circular economy in the oil and gas industry: A data-driven bibliometric analysis. Circular Economy and Sustainability, 5(4), 3465–3527. https://doi.org/10.1007/s43615-025-00579-3
Al-Najjar, B., Salama, A., & Abed, A. (2025). From Compliance to Commitment: Examining the Influence of Corporate Governance and Social Performance on Firms’ Circular Economy Initiatives. Journal of Business Ethics, 1-24.https://doi.org/10.1007/s10551-025-06111-9
Baumeister, R. F., & Leary, M. R. (1997). Writing narrative literature reviews. Review of general psychology, 1(3), 311-320. https://doi.org/10.1037/1089-2680.1.3.311
Bertanza, G., Mazzotti, S., Gomez, F. H., Nenci, M., Vaccari, M., & Zetera, S. F. (2021). Implementation of circular economy in the management of municipal solid waste in an Italian medium-sized city: A 30-year lasting history. Waste Management, 126, 821-831.
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative research in psychology, 3(2), 77-101
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147-160.
Ddiba, D., Andersson, K., Koop, S. H., Ekener, E., Finnveden, G., & Dickin, S. (2020). Governing the circular economy: Assessing the capacity to implement resource-oriented sanitation and waste management systems in low-and middle-income countries. Earth System Governance, 4, 100063. https://doi.org/10.1016/j.esg.2020.100063
Esposito, B., Sica, D., Supino, S., & Malandrino, O. (2024). Measuring the impact of circular economy performance on financial performance: The moderating role of stakeholder engagement. Business Strategy and the Environment, 33(6), 5109–5126. https://doi.org/10.1002/bse.3744
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.
Fobbe, L., & Hilletofth, P. (2023). Moving toward a circular economy in manufacturing organizations: the role of circular stakeholder engagement practices. The International Journal of Logistics Management, 34(3), 674-698.
Geissdoerfer, M., Savaget, P., Bocken, N. M. P., & Hultink, E. J. (2017). The circular economy—A new sustainability paradigm? Journal of Cleaner Production, 143, 757–768. https://doi.org/10.1016/j.jclepro.2016.12.048
Ghisellini, P., Cialani, C., & Ulgiati, S. (2016). A review on circular economy: The expected transition to a balanced interplay of environmental and economic systems. Journal of Cleaner Production, 114, 11–32. https://doi.org/10.1016/j.jclepro.2015.09.007
Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986-1014.
Kirchherr, J., Reike, D., & Hekkert, M. (2017). Conceptualizing the circular economy: An analysis of 114 definitions. Resources, Conservation and Recycling, 127, 221–232. https://doi.org/10.1016/j.resconrec.2017.09.005
Kunal, K., Arun, C. J., Selvakumar, V., Venkatakrishnan, S., Anand, S. T., & Madeshwaren, V. (2025). Adoption of circular economy principles: An empirical study of green strategies in manufacturing organizations. International Journal of Accounting and Economics Studies, 12(4), 113–119. https://doi.org/10.14419/3k4e3441
Iaquaniello, G., Centi, G., Salladini, A., Palo, E., & Perathoner, S. (2018). Waste to chemicals for a circular economy. Chemistry–A European Journal, 24(46), 11831-11839.
Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853-886.
Muriuki, T. E., Ayuya, O. I., & Oloo, B. O. (2024). Towards a circular production system in the coconut value chain: actor, roles, linkage and constraints in Kilifi County, Kenya. Cogent Social Sciences, 10(1), 2362903.https://doi.org/10.1080/23311886.2024.2362903
Negrete-Cardoso, M., Rosano-Ortega, G., Álvarez-Aros, E. L., Tavera-Cortés, M. E., Vega-Lebrún, C. A., & Sánchez-Ruíz, F. J. (2022). Circular economy strategy and waste management: a bibliometric analysis in its contribution to sustainable development, toward a post-COVID-19 era. Environmental Science and Pollution Research, 29(41), 61729-61746.
Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., ... & Moher, D. (2021). The PRISMA 2020 statement: an updated guideline for reporting systematic reviews. BMJ, 372.
Palafox-Alcantar, P. G., Hunt, D. V. L., & Rogers, C. D. F. (2021). Current and future professional insights on cooperation towards circular economy adoption. Sustainability, 13(18), Article 10436. https://doi.org/10.3390/su131810436
Palea, V., Gordano, S., & Migliavacca, A. (2025). Do firms practice what they preach? Corporate performance-communication decoupling on environmental SDGs and the impact of sustainability-oriented governance mechanisms. Sustainability Accounting, Management and Policy Journal, 16(7), 98-127.
Saha, K., Farhanj, Z., & Kumar, V. (2025). A Systematic Review of Circular Economy Literature in Healthcare: Transitioning from a ‘Post-Waste ‘Approach to Sustainability. Journal of Cleaner Production, 145427.
Salles, A., Cervantes, C., & Bragança, L. (2024). Assessing the impacts of urban circular economy practices on economic growth, environmental sustainability, and social benefits: A case study analysis. In Lecture Notes in Civil Engineering (Vol. 489, pp. 482–490). Springer. https://doi.org/10.1007/978-3-031-57800-7_44
She, Y., Udawatta, N., Liu, C., & Tokede, O. (2025). A conceptual framework for implementing the circular economy to minimize construction and demolition waste generation: Engagement of project stakeholders. In Lecture Notes in Civil Engineering, 563(433–445). Springer. https://doi.org/10.1007/978-981-96-2904-6_33
Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, 104, 333-339.https://doi.org/10.1016/j.jbusres.2019.07.039
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.
Toboso-Chavero, S., Zisopoulos, F. K., de Jong, M., & Schraven, D. (2025). Critical review of methodological tools and trends for assessing the performance of inclusive circular cities. Cleaner Environmental Systems, 100275.
Webster, J., & Watson, R. T. (2002). Analyzing the past to prepare for the future: Writing a literature review. MIS Quarterly, 13-23. https://doi.org/10.2307/4132319
Whittemore, R., & Knafl, K. (2005). The integrative review: updated methodology. Journal of Advanced Nursing, 52(5), 546-553.
Copyright (c) 2025 Azyyati binti Anuar, Mohd Rizaimy Shahrudin, Daing Maruak Sadek, Hafizah Hammad Ahmad Khan, Azlyn Ahmad Zawawi, Noorlailahusna Mohd Yusof, Abdul Rashid Mohd Ghazalli
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
