P. Banerjee, Sambashiva Rao Kunja, Deeksha Singh, Lipsa Das
ABSTRACT Amid growing social, economic, and environmental concerns, the adoption of circular economy strategies in the agro‐food sector has become increasingly relevant for addressing sustainability and food security challenges. This study investigates the key factors that support or hinder circular economy implementation in this context by applying the lens of institutional theory. It employs a qualitative approach, drawing on interviews and focus group discussions with 45 professionals from various segments of the agro‐food supply chain. The study identifies drivers, barriers, and enablers that influence circular economy adoption, and highlights how formal regulations, industry expectations, and shared beliefs about sustainability contribute to or constrain progress. Based on these insights, an integrative framework is developed that maps these factors across the regulatory, normative, and cognitive pillars of institutional theory. This study makes a novel contribution by developing an integrative framework to foster effective circular economy implementation within the agro‐food supply chain. It also outlines directions for future research and offers practical implications for managers and policymakers, emphasizing the need for a coordinated response to institutional challenges and supporting the design of more effective circular business models and collaborative research agendas between academia and industry.