Linking Structural Barriers and Circular Business Model Innovation in Small and Medium-Sized Enterprises: An Integrated Framework from a Timber Industrial Cluster

The transition toward circular economy (CE) systems is essential for improving re-source efficiency and sustainability performance in industrial production. However, small and medium-sized enterprises (SMEs) face structural barriers that limit the adoption of cir-cular practices and business model innovation. This study examines the systemic drivers shaping circular transitions in timber-based SMEs within an industrial cluster in northern Mexico. The research integrates the Matrix of Cross-Impact Multiplications Applied to Classification (MICMAC) structural analysis with the Circular Business Model Canvas (CBMC) to examine influence–dependence relationships among key barriers and their im-plications for business model transformation. Empirical data were collected from 32 SMEs using structured surveys and expert consultation. Results identifies financial constraints, technological limitations, and weak collaboration networks as dominant systemic drivers. The CBMC assessment reveals an average implementation level of 45%, with high variabil-ity across firms (31%–99%), indicating fragmented and early-stage circular transition pat-terns. By linking structural diagnostics with business model components, the study identi-fies strategic leverage points and intervention pathways. The findings contribute to CE re-search by providing a systematic, replicable analytical framework and offering practical insights for policymakers and industry stakeholders seeking to accelerate circular bioecon-omy transitions in SME-based industrial clusters.