"Purpose

This study aims to explore sustainable development and business success (BS) through decision-making (DM) in Pakistan’s circular economy.

Design/methodology/approach

This is a co-relational study in which the researchers used cross-sectional data collected from the managers of Pakistan’s manufacturing industries. Accordingly, the authors based this study’s findings on 373 valid samples.

Findings

This study’s structural equation modeling results reveal that DM has a positive and significant effect on sustainable development, which comprises competitiveness, business performance enhancement, flexibility, customer satisfaction and technology development. Moreover, DM positively and significantly affects BS.

Practical implications

This study’s findings support sustainable development, strengthen the socioeconomic conditions and bring about the industries’ well-being through DM. In addition, these findings demonstrate the need for the circular economy to tackle industrial challenges and simultaneously open up economic and environmental growth opportunities for society.

Originality/value

This study offers the original contribution from a circular economy perspective; there needs to be more empirical evidence among managers of manufacturing industries. Besides, this study provides DM’s role in achieving sustainable development in the presence of BS, which has disappeared in an integrated way, particularly in a circular context."