The circular economy (CE) represents a major paradigm shift of moving from the concepts of linear to circular supply chains across multiple industries. Although some aspects of CE adoption within industrial supply chains have been researched extensively (particularly addressing challenges of design, implementation, and operations), the research that relates CE practices with sustainability performance to reveal the current state of CE practices within small and medium‐sized enterprises (SMEs) is scant. The aim of this research was to facilitate SMEs to achieve greater sustainability through CE implementation. This research addresses three research questions—How are CE fields of action related to sustainability performance? What are the issues, challenges, and opportunities of adopting CE in SMEs? And what key strategies, resources, and competences facilitate effective implementation of CE in SMEs? This study adopts a mixed method approach (qualitative and quantitative) using survey research, focus group, and case studies; 130 randomly selected SMEs within the Midlands of the United Kingdom have been surveyed, and the responses are analysed using statistical tools along with findings from focus groups and case studies. The study reveals that all CE fields of action (take, make, distribute, use, and recover) of SMEs are correlated to economic performance, but only make and use are related to environmental and social performance. The study further derives strategies, resources, and competences for achieving sustainability across all the CE field of actions. Additionally, this research reveals the issues and challenges, strategies, resources, and competences required for implementing CE in SMEs.

Small and medium sized enterprises adopt lean practices (LP) to reduce waste across their organisational value chain, which helps achieve sustainability. Process innovation (PI) has also been applied through cleaner production, environmental management system, eco-design etc. to address both customers" needs and legislations by policymakers. Although prior studies reveal the effect of sustainable practices, LP, and PI on sustainable performance separately less is known on the integrated effect of them on sustainability performance. Moreover, studies on mediating effect of LP and PI on sustainability performance is scant. This is significant as LP and PI are considered to be the enablers for achieving sustainability performance. This research addresses this knowledge gap. The research first theorises a model integrating these four major constructs (Sustainability practices, LP, PI and Sustainability performance) through hypotheses development. Subsequently, using structural equation modelling it is tested whether each of sustainability practices, LP, and PI effect sustainability performances. Additionally, mediating effect of LP and PI between sustainability practices and performances is derived. The study uses data from 119 SMEs within manufacturing industries in the Midlands, UK. Further, a few case studies have been undertaken to validate the findings from quantitative analysis. The overall results show that although sustainability practices, LP and PI help achieve sustainability performance of SMEs supply chain through efficiency and responsiveness respectively, the mediating effect LP is more compared to PI. Moreover, SMEs adopt LP when they are economy focused and implement PI when they are pressurised by customers and / or policymakers.

Lean and Sustainability Oriented Innovation both enhance competitiveness of small and medium enterprises (SMEs) in a sustainable way. Lean is efficiency focused, whereas sustainability oriented innovation emphasizes on responsiveness. Although lean and sustainability oriented innovation have been separately researched, there is a gap in knowledge on the combined effect of lean and sustainability oriented innovation (SOI) on SMEs supply chain sustainability. SMEs have limited resources and face numerous competition. Therefore, their supply chain sustainability can only be achieved through most appropriate trade-off between economic, environment and social aspects of business. The purpose of this paper is to understand the combined effect of sustainability oriented innovation and lean practices, on supply chain sustainability performance of SMEs. The study uses a Data Envelopment Analysis (DEA) based framework and applies this to a group of SMEs within the Eastern part of India. Lean and sustainability oriented innovation are considered as input criteria, and economic, operational, environmental and social aspects are considered as output criteria of the proposed framework. DEA segregates inefficient SMEs and suggests at least a SME to benchmark. Subsequently, the study undertakes qualitative approach to suggest improvement measures for the inefficient SMEs. The results reveal that combined lean and SOI helps achieve SMEs' supply chain sustainability. The findings are useful for policy makers and Individual SMEs' owners and managers to undertake measures for improving sustainability. Theoretically this research contributes a DEA-based framework to study the effect of combined lean and SOI on sustainability that helps improving SMEs' sustainability performance.

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