The integration of closed-loop (CL) principles in supply chain management plays an important role for business and society. The CL supply chain can serve as a good example of an environment-friendly and sustainable solution because it assumes waste reduction and further usage in production. Hence, the notion of the CL supply chain is premised on the design, control and operation of a system that creates extra value using the entire product life cycle and capture value recovery from various returns over time. In practice, a successful integration of CL principles depends on many contextual factors. This study aimed to identify the factors that support and discourage CL supply chain innovations in emerging markets. The study employed institutional theory as theoretical background and conducted an in-depth case analysis of a Russian waste management company to present empirical evidence. The results showed that cooperation with an experienced and legitimate partner can drive the introduction of a CL initiative. Meanwhile, a low level of knowledge and trust might become a serious impediment. Thus, investment in knowledge dissemination and reputation building are crucial in an emerging market.