Development of a Conceptual Model of the Requirements and Enablers for the Implementation of Smart Circular Economy in the Steel Industry

Document Type : Original Article

Authors

1 Graduated with a Master of Business Administration, Department of business Management Faculty of financial science, Management and Entrepreneurship, University of Kashan, Kashan, Iran raziyebahaoo@gmail.com

2 Associate Professor, Department of Business Management, Faculty of Financial Science, Management and Entrepreneurship, University of Kashan, Kashan, Iran

3 Associate Professor, Department of Business Management, Faculty of Financial Science, Management and Entrepreneurship, University of Kashan, Kashan, Iran.

10.22034/envj.2026.585913.1644
Abstract
Introduction: The smart circular economy is an emerging approach that, by leveraging intelligent and digital technologies, seeks to enhance resource efficiency, reduce raw material consumption, and minimize the generation of waste and pollutants. Through strategies such as reuse, repair, remanufacturing, and recycling of products, this approach not only promotes environmental sustainability but also contributes to cost reduction, increased organizational resilience, innovation development, job creation, and the alignment of economic growth with sustainable development goals. Despite the growing importance of this concept, limited research has addressed the identification and prioritization of its requirements and enablers. This research gap is particularly evident in energy-intensive industries, including Iran’s steel industry. Therefore, the present study aims to identify and prioritize the requirements and enablers for the implementation of a smart circular economy in the steel industry.
Materials and Methods: This study employed a mixed-methods (qualitative–quantitative) approach. In the qualitative phase, thematic analysis was used to identify and extract the requirements and enablers of smart circular economy implementation in the steel industry. In the quantitative phase, the relationships and the degree of mutual influence among these factors were examined using a fuzzy cognitive map (FCM). The statistical population consisted of experts and specialists in the steel industry. Data in the qualitative phase were collected through semi-structured interviews, while in the quantitative phase a structured questionnaire was used. The sampling and interview process continued until theoretical saturation was achieved, which occurred after 14 interviews.
Results: Analysis and coding of interview data led to the extraction of 61 basic themes, which were subsequently consolidated and categorized into 13 organizing themes and 5 global themes. Furthermore, the fuzzy cognitive map analysis clarified the causal relationships among these factors and classified them into three categories: influential, affected, and intermediate factors. Centrality analysis indicated that “environmental regulations and governance”, “supportive and facilitative policymaking”, and “transformational leadership and managerial commitment” are the most influential factors. These components act as the main system drivers and determine the direction and pace of transition toward a smart circular economy. In contrast, “market development and profitability” and “efficiency and cost reduction” were identified as affected factors, primarily representing the outcomes of other system components. Additionally, the majority of the system structure consisted of intermediary factors such as “organizational agility and structural optimization”, “circular business model design”, “smartization and digital transformation”, “development of green technologies and infrastructure”, “investment and economic justification”, “human resource development”, “incentive systems”, and “cultural development and collective collaboration”, which serve as connecting links among other dimensions.
Discussion: The requirements for implementing a smart circular economy in the steel industry can be explained across structural, technological, governance, economic, and human dimensions. At the organizational level, structural agility and optimization, along with the transition toward circular business model design through reduced decision-making layers, the formation of cross-functional teams, and the development of network-based structures, provide the foundation for learning and innovation. From a technological perspective, digital transformation based on the Internet of Things (IoT), big data, and artificial intelligence, together with the development of green technologies and infrastructure, play a central role in resource optimization and pollution reduction. At the governance level, stringent environmental regulations and supportive policies, through binding standards, financial incentives, and intelligent monitoring mechanisms, facilitate the transition process. In addition, in the area of human capital, skills development, incentive systems, cultural building, and transformational leadership play decisive roles in the successful implementation of the smart circular economy. Overall, the synergy among these dimensions can ensure the transition of the steel industry toward higher sustainability and efficiency.

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Articles in Press, Accepted Manuscript
Available Online from 24 October 2026