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Published on: February 1, 2020
A comparative analysis of the development of circular supply chain management in Malaysia and Thailand
Preecha Wararatchai1, Mohd Rizaimy Shaharudin2, Ahmad Rais Mohamad Mokhtar3
1College of Logistics and Supply Chain, Suan Sunandha Rajabhat University, 111/3-5 Moo 2 Khlongyong Sub-District, Phutthamonthon District, Nakhon Pathom, 73170, Thailand.
Abstract:
This study examines the adoption and development of circular supply chain management (CSCM) among manufacturers in Malaysia and Thailand. The methodology comprises an initial screening of 30 manufacturers to evaluate their level of CSCM implementation, followed by in-depth interviews with seven leading firms selected via purposive sampling. The findings reveal that Thai firms adopt a more structured approach to remanufacturing and produce higher volumes of mixed-material products. In contrast, Malaysian firms exhibit greater internal circularity, particularly in material sourcing and cost minimization for reused materials. Nevertheless, both countries face common barriers, including high operational costs, inconsistent product quality, and limited market demand for products containing recycled content. The study offers practical implications for managers and practitioners by providing tools to assess CSCM adoption and enhance circular economy performance. Wider adoption could yield benefits such as cost savings, improved resource efficiency, reduced waste disposal, and increased revenue from remanufactured goods. As one of the first cross-country comparisons of CSCM in Southeast Asia, this study contributes to the literature on circular supply chain management and the circular economy. It also supports the resource-based view and institutional theory, underscoring how supply chain structures, regulatory frameworks, and economic constraints shape sustainability strategies. Future research should adopt longitudinal approaches to monitor the evolution of CSCM practices under growing institutional pressures. Greater focus is needed on effective circular business models, especially for small and medium-sized enterprises. Additionally, assessing the financial implications of CSCM adoption is vital to guide policy and practice in emerging economies.

