The Role of Circular Economy Strategies in Cost Reduction and Organizational Productivity Enhancement

Abstract

This study examines the role of circular economy strategies in reducing costs and enhancing organizational productivity, analyzing practical approaches for their implementation in organizations based in Tehran. This research employed a qualitative approach using a phenomenological method. Data were collected through semi-structured interviews with 29 managers, experts, and consultants in the field of circular economy in Tehran. A purposive sampling method was used, and interviews continued until theoretical saturation was reached. The collected data were analyzed using NVivo software, applying open, axial, and selective coding to extract key themes. The results indicated that circular economy strategies influence four key areas: resource optimization, operational cost reduction, organizational productivity enhancement, and environmental sustainability and social responsibility. The most effective practical approaches identified included waste reduction, recycling and reuse, supply chain optimization, digitalization of organizational processes, and the development of innovative technologies, all contributing to cost reduction and productivity improvement. The findings revealed that implementing circular economy policies can lead to reduced operational costs, optimized production processes, and enhanced organizational productivity. The use of digital technologies and strengthened interdepartmental collaboration were identified as critical success factors for these strategies. Additionally, corporate social responsibility and adherence to environmental sustainability principles not only yield economic benefits but also enhance brand reputation and customer trust.