Internationalisation scope and the circular economy adoption in manufacturing SMEs

Purpose Despite growing evidence that firm-external market conditions shape sustainability transitions, the role of internationalisation scope as a driver of circular economy (CE) adoption remains underexplored, particularly in Central and Eastern Europe (CEE). This study aims to examine how the geographical scope of market operations – local, regional, national or international – relates to CE knowledge and the breadth of CE practice implementation in manufacturing small and medium-sized enterprises (SMEs). Design/methodology/approach Survey data from 1,200 manufacturing firms in Poland were analysed using association tests and classification techniques. CE adoption was operationalised across five managerial domains: packaging, product life extension, production processes, waste management and industrial symbiosis. Findings Firms operating primarily in local markets report significantly lower levels of CE knowledge and implementation than internationally active SMEs. The strongest relationships appear in packaging and waste management, suggesting the influence of international regulatory and customer requirements. Cluster analysis indicates that internationally oriented firms pursue more comprehensive CE strategies across functional areas. Practical implications The results of this study suggest that international market engagement may function as a catalyst for managerial learning and the diffusion of circular practices. Policymakers and regional development agencies could strengthen SME sustainability transitions by integrating CE-related support into internationalisation programmes. Originality/value By conceptualising market scope as a strategic contingency factor, this study extends research on sustainability management and SME internationalisation. This study reveals domain-specific CE responsiveness to internationalisation, showing that the relationship varies with practice complexity, and provides evidence of size-contingent limits of sustainability diffusion from CEE, a region under-represented in the international business literature.