Cluster Analysis of Circular Economy and Industrial Symbiosis Practices and Their Impact on Sustainability Performance in the Plastics Industry

Abstract

This study examines how plastics manufacturing firms can be classified according to their level of implementation of circular economy (CE) and industrial symbiosis (IS) practices and how such adoption influences sustainability performance. Using data from plastics manufacturing firms, we integrate cluster analysis with partial least squares structural equation modeling to capture firm-level heterogeneity and examine practice–performance relationships. The analysis reveals three key archetypes: reactive and isolated, emerging planners and network explorers, and executors and network builders. Results show that higher adoption of CE and IS practices is positively related to all performance dimensions. Effects are strongest on environmental and social outcomes, whereas economic gains remain significant but comparatively lower, suggesting a reliance on longer-term systemic enablers. By linking firm heterogeneity with sustainability outcomes, this study advances understanding of circular transition pathways in the plastics sector and provides actionable guidance for managers and policymakers in line with the European Union's Circular Economy Action Plan.