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Samadhiya, Ashutosh, Kumar, Anil, Kumar, Niraj, Upadhyay, Arvind, Garza-Reyes, Jose Arturo and Luthra, Sunil (2026) Preventing circular supply chain leakage: a strategic pathway to businesses' net-zero targets. Business Strategy and the Environment. ISSN 0964-4733 (In Press)
Circular supply chains can support net-zero transitions, yet resources may be lost, diverted, degraded, or fail to return to productive use. This study conceptualizes circular supply chain leakage (CSCL) and examines how intermediaries help organizations prevent it. Drawing on an extended resource-based view (ERBV), the study analyzes 33 main-study interviews with participants representing third-party logistics providers, recycling experts, circular-economy consultants, and green suppliers. The findings distinguish three forms of leakage: material leakage, value leakage, and recovery/reintegration leakage. Twelve capabilities are identified and organized into four interconnected mechanisms: visibility and diagnosis, resource retention and recovery, innovation and adaptive reconfiguration, and network mobilization and collective action. The study extends ERBV by conceptualizing leakage prevention as a distributed capability challenge requiring intermediaries to connect organizational resources, relationships, knowledge, and recovery networks. It offers managerial and policy implications for strengthening circular resource flows while positioning leakage prevention as a potential pathway toward net-zero targets, rather than a demonstrated emissions-reduction outcome.
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