The Impact of Circular Economy Enablers on Supply Chain Resilience in the Pulp and Paper Industry

Abstract

This study investigates the influence of circular economy (CE) enablers on supply chain resilience (SCR) within the pulp and paper industry. Specifically, it examines the mediating role of circular economy implementation (CEI) in translating operational and strategic enablers into resilient supply chain outcomes. A quantitative survey approach was adopted, targeting firms within the Malaysian pulp and paper industry. Data were collected from 186 firms and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test direct and indirect relationships among eco-design, reverse logistics, supplier collaboration, green manufacturing, waste minimization, CEI, and SCR. The results confirm that all CE enablers significantly influence CEI, with reverse logistics and supplier collaboration exerting the strongest effects. CEI was found to have a significant direct effect on SCR and partially mediated the relationship between all five enablers and SCR. These findings underscore the strategic role of CEI in fostering resilient supply chains. This study is industry-specific and geographically focused on Malaysian firms, which may limit generalizability. Future studies could explore cross-industry or cross-country comparisons. Moreover, qualitative insights could enrich the understanding of implementation barriers and contextual dynamics. This study advances the theoretical integration of circular economy and supply chain resilience by establishing CEI as a mediating construct. It provides empirical evidence from an under-researched yet high-impact industry and offers actionable insights for supply chain managers and policymakers aiming to embed sustainability and resilience in industrial ecosystems.