This study investigates how businesses can implement effective circular supply chain (CSC) strategies for both closed-loop and open-loop supply chain flows to enhance the circular value of products and supply chains. It aims to identify the key value creation capabilities across levels of supply chain operations, process management and structural management and explore the complex interrelationships between circular supply and demand uncertainties and business configurations and capabilities.
This research adopts a theory-extension approach to investigate CSC capabilities and strategies, building on established circular economy (CE) and circular supply chain management (CSCM) theories. The fashion and textile industry serves as a case example, given its critical role in driving CE transformation and advancing supply chain practices. Using a systematic literature review and in-depth content analysis, the study explores how these theories can be extended and practically connected to inform future research and practice.
The research identifies two core typologies of CSC strategies: efficiency-focused and flexibility-focused circulation. Each is supported by distinct combinations of CSC capabilities that address different demands in circular product markets. The study presents two key theoretical propositions that illustrate differentiated value-creation patterns in supply chain circular transformations. Additionally, it proposes a CSC strategic matrix to help managers adopt aligned CSC strategies to fulfill varying product demand.
This research advances CE and CSCM theories by uncovering the strategic interrelationships between business supply chain operational configurations and demand segmentation. It offers practical guidance for businesses to develop optimal combinations of CSC capabilities and configurations, enabling them to achieve differentiated advantages in diverse circular product markets.
