Assessing the Impact of Strategic Implementation of Circular Economy on the Competitive Advantage of Canadian Manufacturing Firms
DOI:
https://doi.org/10.53819/81018102t4143Abstract
This literature-based study assessed the influence of strategically implementing circular economy principles on the competitive advantage of manufacturing firms in Canada. Circular economy strategies, which are characterized by reduced resource input, waste, emission, and energy leakage, have risen in importance due to growing global sustainability concerns. Despite the known environmental and economic benefits of transitioning to a circular economy, a comprehensive understanding of its specific impact on competitive advantage has remained relatively unexplored, particularly within the context of the Canadian manufacturing sector. Through a systematic review and analysis of existing literature, this study illuminated the methods that firms adopted for this strategic transition. Such methods included the establishment of closed-loop supply chains, the integration of eco-design, and the shift towards product-as-a-service models. The study also identified and analyzed the challenges encountered during this process, including technical, financial, regulatory, and market barriers, and how firms strategically adapted to overcome these obstacles. The study finally examined the competitive outcomes of these circular economy strategies, assessing their impact on operational efficiency, cost savings, brand reputation, customer loyalty, and market differentiation. The research suggested that effectively implemented circular economy strategies could significantly enhance the sustainability and long-term resilience of Canadian manufacturing firms, while also contributing to competitive advantage.
Keywords: Circular Economy, Strategic Implementation, Competitive Advantage, Canadian Manufacturing Firms, Literature-Based Study
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