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Aligning Financing Strategies With Circular Business Principles: A Multicriteria Decision Framework

Year: 2025

Type: article

Abstract: ABSTRACT Circularity principles, evident in closed‐loop systems, aim to minimize waste and maximize value through material and product reuse, repair, refurbishment, and recycling. Circular practices can be financed using diverse models with different characteristics. Examples include pay‐as‐you‐go, which involves usage‐based payments; performance‐based financing, which links funding to outcomes; grants, which provide nonrepayable support; public–private partnerships, which combine public and private resources; green bonds, which fund eco‐friendly projects; and impact investing, which addresses social or environmental impacts alongside financial gains. To establish the correlation between circular supply chain principles and financing strategies, this study employed two multicriteria decision‐making methods: the analytic hierarchy process (AHP) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS). The obtained results were compared with findings from diverse manufacturing industries in existing literature.

Source: Business Strategy and the Environment

DOI: 10.1002/bse.4199

Authors: João Zambujal‐Oliveira, Ana Franco, Beatriz Fernandes

Institutions: Laboratório para a Ciência da Computação e Informática, Universidade da Madeira

Language: English

Topic: Sustainable Supply Chain Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Responsible consumption and production

Open Access status: green

OpenAlex ID: W4407556561

FWCI: 11.5

Cites: 125

Cited by: 13

Related to: 10