Catalysing the Circular Economy in SMEs: A Systematic Review of Digital Tools, Barriers, and Enablers

Pardon J  Muzondo; Rahabhi Mashapure; Purity Hamunakwadi; Bronson Mutanda; Julius Tapera; Admire Mthombeni

doi:10.55845/joce-2026-4185

Authors

Pardon J Muzondo Marondera University of Agricultural Science and Technology, Department of Supply Chain Management Author https://orcid.org/0000-0002-8913-1474
Rahabhi Mashapure Manicaland State University of Applied Sciences, Department of Applied Business Sciences Author https://orcid.org/0009-0002-6526-9169
Purity Hamunakwadi Nelson Mandela University, Department of Building and Human Settlements Development, Nelson Mandela University, South Africa Author https://orcid.org/0000-0003-2940-4036
Bronson Mutanda Manicaland University of Science and Technology, Department of Applied Business Sciences Author https://orcid.org/0000-0003-3438-2126
Julius Tapera Lupane State University, Vice-Chancellor's Office, Lupane, Zimbabwe Author https://orcid.org/0000-0002-7558-6232
Admire Mthombeni University of KwaZulu-Natal, Graduate School of Business and Leadership: Durban, South Africa Author https://orcid.org/0009-0000-2439-302X

DOI:

https://doi.org/10.55845/joce-2026-4185

Keywords:

Blockchain, Circular Economy , Digital Tools, Small and Medium Enterprises , Sustainability

Abstract

This paper presents a systematic literature review, conducted following the PRISMA 2020 framework, to investigate the role of digital and technological tools in facilitating Circular Economy (CE) adoption within small and medium-sized enterprises (SMEs). Despite their critical contribution to global economies, SMEs encounter significant barriers, including financial constraints, technological complexity, and regulatory ambiguities that hinder their transition to circular models. This review synthesises evidence from 45 peer-reviewed journal articles, case studies, and industry reports published between 2018 and 2025. The findings demonstrate how technologies such as AI, IoT, and blockchain enhance resource efficiency, supply chain transparency, and product lifecycle management. Key enablers identified include government subsidies, targeted training programmes, and collaborative innovation networks, which collectively mitigate adoption barriers. Employing a critical analytical lens, this review moves beyond cataloguing tools, synthesising findings into an integrative framework that links SME digital maturity with circular innovation capacity. The study offers a unique theoretical contribution by merging the discourse on digital transformation with circular economy principles within the specific context of SMEs, an area that has not been thoroughly examined. Practically, it offers actionable implications for SME managers, policymakers, and technology developers, advocating for tailored, cost-effective digital solutions and coherent policy frameworks. By mapping the current research landscape and proposing a focused agenda for future inquiry, this review aims to accelerate sustainable innovation and bolster the competitiveness of SMEs in an evolving circular economy.

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