Interpretive Structural Modeling (ISM) of the Factors Influencing Tourism Entrepreneurship Based on the Circular Economy

Document Type : Original Research Articles

Authors

1 Assistant Professor, Department of Tourism Management and Economics, Faculty of Tourism, University of Tehran, Tehran, Iran.

2 Department of Tourism Management and Economics, Faculty of Tourism, University of Tehran, Tehran, Iran

10.30466/grfs.2026.56853.1184

Abstract

Tourism is one of the world’s largest industries, yet traditional models face environmental pressures, excessive resource use, and intense competition. The circular economy, focused on reducing, reusing, and recycling, offers new possibilities for sustainable tourism, and entrepreneurship plays a key role in applying its principles. This study identifies the key factors influencing circular-economy-based tourism entrepreneurship and develops an interpretive structural model to explain causal relations, hierarchical levels, and the intensity of influence among these factors. The research is applied and uses a mixed approach. In the qualitative phase, unstructured interviews with 17 experts in tourism, entrepreneurship, and business management were conducted. Thematic analysis led to the extraction of 10 key factors. In the quantitative phase, interpretive structural modeling (ISM) and MICMAC analysis were used to determine pairwise relations, hierarchical levels, and power–dependence classifications. The 10 factors were organized into five hierarchical levels. “Government supportive policies and institutional support” appeared at the highest level as an independent driving force. “Sustainable investment and local circular development funds” and “sustainable transportation and resource-optimization technologies” played intermediary roles. Six middle factors formed a linkage cluster. At the lowest level, “community-based participation and waste-to-value conversion” emerged as the most dependent factor and final outcome. Strengthening supportive policies and institutional frameworks is essential for activating the factor chain and achieving community-based participation in a circular economy. The proposed model provides practical guidance for policymakers, planners, and entrepreneurs in promoting sustainable, resilient, and regenerative tourism.

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