The Application of Circular Economy and Public Policy in Encouraging Sustainable Development in MSMEs: A Systematic Literature Review in Developing Countries

Amanda Moremas; Sofi Ladtjuba

Authors

Amanda Moremas Institute of Public Policy and Natural Resource Governance, Universidad de Chile, Santiago, CHILE
Sofi Ladtjuba Department of Economic History and International Relations, Stockholm University, Stockholm, SWEDEN

Keywords:

Systematic literature review, Circular economy, Public policy, Sustainable development, Developing countries, MSMEs

Abstract

This systematic literature review (SLR) presents an analysis of 421 scientific articles on the governance of circular economy implementation and sustainable development in Micro, Small, and Medium Enterprises (MSMEs) published between 2022 and 2026. This study uses a quantitative bibliometric approach using VOSviewer software combined with in-depth qualitative analysis to examine research trends, themes, and evolutions in this field. The novelty of this study lies in the use of VOSviewer to map the public policy literature ecosystem and the integration of qualitative methods for holistic interpretation. The findings show a sharp increase in the number of publications with an annual growth rate of 62.4%, which peaks in 2025 with 137 documents. Geographically, the research is highly concentrated in developing countries, with Indonesia and Malaysia being the epicenters of the largest studies and collaborations. The cluster analysis reveals several key themes: business sustainability, green innovation, and governance approaches that focus on internal mechanisms such as financial literacy and organizational capabilities. Sustainability initiatives such as the Sustainable Development Goals (SDGs), rural waste management, and digital transformation are central focuses whose trends continue to increase in the reviewed literature. The study contributes to the academic knowledge landscape and provides evidence-based strategic guidance for policymakers, while also identifying research gaps for future exploration.

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References

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