From Ad Hoc to Systemic Circular Construction: Evidence of a Legislative Bottleneck in an Emerging Economy

Circular economy adoption in construction is often examined through static barrier taxonomies, which offer limited explanation for fragmented implementation in emerging markets. Drawing on Institutional Theory and the Multi-Level Perspective (MLP), this exploratory study examines whether stakeholder perceived legislative and institutional barriers are associated with phase-specific circular economy (CE) adoption in Oman. A cross-sectional survey of 114 specialized construction experts was analyzed using partial least squares structural equation modeling (PLS-SEM), hierarchical regression, and multi-categorical mediation analysis across twelve circular strategies spanning design, construction, and end-of-life phases. Descriptive results indicate moderate, uneven circularity: design-for-adaptability scored highest ( M = 3.52) versus selective demolition ( M = 2.96). PLS-SEM point estimates indicate perceived regulatory and institutional barriers show a weak, non-significant association with design-phase adoption ( β = -0.12, p = 0.180), a stronger negative association with construction-phase adoption ( β = -0.29, p = 0.002), and the largest negative association with end-of-life implementation ( β = -0.47, p < 0.001), consistent with a legislative bottleneck concentrated at the end-of-life stage rather than intensifying uniformly across the project lifecycle. A supplementary mediation analysis points to a contractor-specific indirect effect through perceived legislative barriers ( β = -0.22, 95% CI [-0.42, -0.06]), suggesting a stakeholder-specific mechanism rather than a generalized effect. These provisional patterns suggest a preliminary macro-institutional framework for rapidly developing economies moving from ad hoc circular initiatives toward more systemic governance, organized around regulatory codification, enforcement architecture, and market-enabling procurement, offered as a starting point for future confirmatory research with larger, more representative samples.