A Review on Role of Circular Economy toward Sustainable Performance

Abstract

In recent years, sustainability has received great attention to address the needs of today’s generation while preserving natural resources for the future. The circular economy has gained prominence within this movement, focusing on reprocessing, production, and resource management to simultaneously achieve economic competitiveness and environmental sustainability. However, despite the growing emphasis on sustainability, the connection between circular economy practices and sustainable performance in manufacturing remains underexplored in current research. This paper aims to investigate and highlight emerging trends in sustainable performance, with a particular focus on the impact of the circular economy. Through an extensive review of articles published in the Web of Science database over the past decade, 105 studies were selected through an abstract screening and full-text review process. The findings indicate a growing research interest in sustainable performance and the circular economy, with a peak of 28 publications in 2023 and 21 in 2022. The most frequently evaluated dimensions of sustainable performance include environmental, social, economic, operational, and organizational factors. Building on these findings, this paper suggests several directions for future research to support sustainable growth in the manufacturing industry, with benefits extending to industry progress, national resilience, and improvements in living standards.