Transitioning to circular business models in developing countries: a systematic literature review of barriers, enablers, and future directions

The concept of the circular economy (CE) is gaining attention in developing countries as they cope with global challenges such as resource depletion, climate change, and environmental degradation. However, the adoption of CE principles at the business model level in these countries is constrained by various obstacles. This systematic literature review of 107 articles from Scopus and Web of Science (WoS) examines study results on circular business models within developing economies to establish a comprehensive framework for researchers, practitioners, and policymakers. We identify proof of obstacles such as financial constraints, regulatory and institutional challenges, technological limitations, market and supply chain issues, organizational hurdles, and cultural resistance. Among successful practices, drivers, and enablers that facilitate transition from linear to circular are highlighted: policy support, innovation, stakeholder engagement, and capacity building. A research gap is identified, especially in the health sector, food supply chains, and plastic packaging manufacturers. Due to the differences in terms of methodology, context, and topic of the reviewed research, the findings cannot be generalized. Nevertheless, by synthesizing current knowledge, our study aims to offer valuable insights to guide businesses in adopting circular models and policymakers in creating supportive environments, contributing to sustainable development in emerging economies.