Engaging the Loop: A Conceptual Framework Linking Stakeholder Engagement to Circular Economy Adoption for Waste Reduction

This study addresses persistent challenges in municipal solid waste systems, namely low diversion and uneven resource recovery, by examining how stakeholder engagement (with communities, suppliers, and regulators) supports the adoption of circular economy (CE) practices and how operational change, often termed green process innovation, drives measurable waste outcomes. The central hypothesis is that CE adoption mediates the relationship between stakeholder engagement and waste reduction. Using a narrative review oriented to concept development, records were retrieved from the Scopus database (articles and reviews, 2000–2025, English) with a reproducible query targeting stakeholder engagement, CE, policy/strategy, and organizational settings. After de-duplication, titles/abstracts and full texts were screened for relevance to engagement, CE adoption, and waste outcomes or proxies; data were extracted into a concept-centric matrix and synthesized via integrative thematic analysis. Primary outcomes were diversion rate, secondary material yield, and contamination reduction. The synthesis reveals two pathways: (1) a direct association whereby engagement mobilizes source separation, social acceptance of reuse/repair, and take-back participation; and (2) a stronger, mediated pathway in which engagement enables CE adoption, such as design for disassembly, industrial symbiosis, organics valorization, and optimized recycling–recovery portfolios that directly improves diversion and recovery. Governance capacity, policy coherence, and digital readiness strengthen these effects. Overall, stakeholder engagement improves waste outcomes primarily by deepening and routinizing CE adoption, with supportive governance and policy environments amplifying gains. The resulting framework offers testable propositions and practical guidance for municipalities and firms seeking scalable circular outcomes.