Determinants of circular supply chain implementation in a resource-constrained country: Evidence from Liberia’s mineral water industry

Abstract

Background: Mineral water companies face growing environmental challenges and resource depletion, yet circular supply chain (CSC) adoption remains uneven. In developing economies, structural resource scarcity limits firms’ ability to build capabilities using conventional models, creating a gap in understanding how circular practices emerge under constraints.
Objectives: This study examined how internal organisational factors influence CSC implementation in Liberia’s mineral water sector, and how government policy moderates this relationship, focusing on firms operating under resource scarcity.
Method: A quantitative approach surveyed 306 respondents from three mineral water companies. Data were collected from supply chain personnel and analysed using partial least squares structural equation modelling to examine the effects of managerial commitment, operational process capability, resource allocation discipline and government policy on CSC adoption.
Results: Managerial commitment, operational process capability and disciplined resource allocation significantly influenced CSC implementation. Government policy strengthened the link between internal capabilities and implementation, enhancing adoption when aligned with firm capacities.
Conclusion: Internal organisational factors are critical drivers of CSC implementation under scarcity, and supportive policy frameworks amplify their effect. Scarcity can act as a generative condition that reshapes resource prioritisation and allocation for sustainable operations.
Contribution: The study extends the resource-based view by demonstrating how firms develop circular capabilities under persistent scarcity. It offers empirical evidence on internal mechanisms and policy interactions that enable CSC implementation in developing economies, providing insights for managers and policymakers seeking to enhance sustainability in resource-constrained contexts.