Abstract
This study contributes to the literature by investigating the dynamic process of CE implementation within Small and Medium Enterprises (SMEs). Using the EU database, which includes 16,365 SMEs, we draw on an integrated theoretical framework that combines environmental literature and strategic orientation, exploring the interplay between barriers, organizational transformation, and stages of CE integration. Through a comprehensive empirical analysis of SMEs, we confirm the presence of feasibility barriers and resource-related obstacles that impact the CE implementation process. Our findings reveal a two-fold pattern: initial feasibility barriers, primarily perceived by senior managers, and subsequent resource-related obstacles that SMEs encounter during implementation. Moreover, the research reveals that successful organizational transformation pivots on the SME's capacity to transform these obstacles from deterrents into challenges. We highlight the significance of a gradual integration approach, emphasizing the role of diverse environmental activities. This research not only extends the understanding of CE implementation in SMEs but also informs strategies for sustainable growth and innovation in the broader landscape of environmental management.