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Small and medium enterprises (SMEs) are key actors in the implementation of the circular economy (CE) concept as a basis for creating sustainable societies. Thus, the main objective of this study is to identify key strategies and resources that may favor CE implementation in SMEs. These key strategies should encourage SMEs to develop eco-innovations to gain competitive advantage and create and capture value that is coherent with nature. A mixed-method approach that consisted of a literature review and a focus group for gathering qualitative data was used. This focus group was made up of experts such as researchers and practitioners from universities, sustainable SMEs, and consultancy firms in Spain. A set of strategies and internal and external factors were identified to help SMEs to implement the CE. Finally, some useful dynamic capabilities for implementing the CE in business performance were identified.

The circular economy has become an important issue in recent years because it makes sustainable development feasible by creating value in the economy and by closing the energy and materials loops. However, since most companies continue to operate under a linear model, it is particularly important to start providing companies with tools that facilitate their shift to the circular paradigm. The main objective of this research is to establish the key elements that are necessary for assessing the level of circular economy implementation. To that end, the Delphi method is used to validate and define the key elements of three categories: circular economy fields of action, industrial symbiosis, and environmental certifications. As a result, this study identifies the key elements that assess the degree of circular economy implementation and that allows small and medium‐sized enterprises to understand where they are and what they need to do to improve their performance.

Abstract:Purpose: This research analyzes the maturity of environmental management as well as the degree of to which the Circular Economy has been implemented in Basque SMEs.Design/methodology/approach: A total of 17 case studies were carried out in industrial SMEs companies in the Basque Country. Findings:The main results show that companies are limited to complying with the law and in many cases are worried about the image of the company, although they are not committed to environmental issues. There is still a lot to do in SMEs, as they are the companies that face the biggest challenges due to a lack of resources. Originality/value: Circular Economy aims to change a linear economy into promoting sustainability of the economy while also engaging in sustainable environmental protection. This research has focused on small and medium enterprises as they represent a 99% of companies in Europe and they are the ones that have the most difficulty reaching a stage of environmental excellence due to their limited resources.Keywords: circular economy, basque industry, industrial ecology -1047-Journal of Industrial Engineering and Management -http://dx

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Environmental management has become a fundamental concern for organizations, customers, and citizens, yet there are few environmental management metrics that guide toward environmental excellence. This research presents a detailed qualitative model of the evolution of environmental management of a firm through the definition of maturity stages and causal influences. The model provides a technique for assessing maturity stages as well as steps that can assist or negate their ecological advancement. The causal-based classification helps companies to understand the need for nontechnical elements in the process, such as top management commitment. This article also contributes to the literature on integrative multimethod research, as it brings together several approaches to environmental management.

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