Operational Performance Implications of Circular Economy Implementation: An Empirical Exploration in the Manufacturing Sector

ABSTRACT The global manufacturing sector has increasingly adopted circular economy ( CE ) practices to address sustainability challenges and improve operational efficiency. This study explores the impact of five CE practices—reduce, reuse, remanufacture, recycle, and recover—on key operational performance dimensions: quality, speed, dependability, flexibility, and cost. Drawing on data from 197 manufacturing professionals selected through purposive sampling, the study employs regression and correlation analyses to generate empirical insights. The findings indicate that remanufacture significantly enhances quality and speed, whereas recovery practices show strong potential for cost savings and adaptability. In contrast, reduce practices demonstrate limited direct effects unless strategically aligned with lean approaches. Reuse and recycle practices contributed more to long‐term sustainability than immediate operational gains. Managerial, theoretical, and policy implications underscore the need for strategic integration, technological advancements, and supportive policy frameworks to maximize CE benefits. Although the results offer valuable practical and theoretical implications, the nonprobability sampling approach limits statistical generalizability. Accordingly, this research should be viewed as an exploratory mapping of CE practice impacts, providing a foundation for future studies employing more representative designs.