Circular procurement implementation barriers in the construction industry of developing economies: a quantitative analysis

Purpose The procurement phase of the construction project lifecycle remains critical for facilitating successful project outcomes, mainly as it concerns sustainability performance. Therefore, integrating circular economy principles into procurement functions (circular procurement-CP) has become imperative. However, the implementation of CP remains under-researched in the context of the construction industry. This study addresses this knowledge gap by identifying and assessing the inhibitors to optimal CP implementation in a developing economy context. Design/methodology/approach The study adopted a survey strategy wherein quantitative data were collected from a population of a randomly selected sample of construction professionals using questionnaires. The responses were subsequently analysed using descriptive and multivariate statistics. These include mean scores, Kruskal-Wallis H-test (K-W), Student-Newman-Keuls (SNK) post hoc technique, exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). The CFA was employed to affirm the derived constructs from the EFA. Findings The study’s results indicate that lack of support from top management, lack of financial resources and perceived high implementation costs ranked as the top three barriers negating effective CP implementation in construction organisations. Furthermore, the barriers were classified into five clusters: inadequacy of government policies and initiatives, stakeholder-related challenges, procurement-related bottlenecks, organisational culture and financial impediments categories, respectively. Practical implications The study’s results will increase CP implementation awareness among relevant Nigerian construction industry stakeholders. Also, the study outlines best practice guides for stakeholders in the construction delivery value chain to drive sustainable procurement. Originality/value Besides enabling an elicitation of the critical barriers to CP implementation in the Nigerian construction industry, the study’s results are expected to contribute towards bridging the extant knowledge-practice gap.