Examining the Impact of Circular Economy on the Corporate Profitability of Voltic Ghana Company Ltd: The Mediation Effect of Process Innovation

Felix Owusu-Ansah, Kwabena Obiri-Yeboah and Michael Tetteh
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Felix Owusu-Ansah: Department of Supply Chain and Information Systems – Kwame Nkrumah University of Science and Technology, Kumasi, Ghana, David Eccles School of Business, UTAH – USA.
Kwabena Obiri-Yeboah: Department of Supply Chain and Information Systems – Kwame Nkrumah University of Science and Technology, Kumasi, Ghana, David Eccles School of Business, UTAH – USA
Michael Tetteh: Department of Supply Chain and Information Systems – Kwame Nkrumah University of Science and Technology, Kumasi, Ghana, David Eccles School of Business, UTAH – USA

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 12, 4109-4129

Abstract: This study investigates the impact of circular economy practices on the profitability of Voltic Ghana Company Ltd, exploring the interplay between sustainability and financial performance within the dialog of industry-specific and geographic factors in Ghana. Amid growing environmental pressures on firms, this research emphasizes the importance of aligning economic efficiency with environmental stewardship to meet societal needs. Using purposive sampling, data from 100 respondents directly involved in circular economy practices were targeted, coded, and analyzed through SPSS (version 27) and validated using AMOS for dimensional reduction. The study reveals a positive and significant relationship between circular economy practices and corporate profitability, demonstrating that process innovation enhances these benefits by providing a competitive advantage. Additionally, the mediation analysis confirms that process innovation is a crucial intermediary, amplifying the profitability gains from circular economy initiatives. These findings underscore the economic viability of sustainable business models, offering empirical support for corporate decision-makers, investors, and policymakers to integrate circular economy principles with strategic innovation. This research provides a framework for companies in similar industries, bridging the gap between sustainability and profitability while guiding efforts to align environmental goals with business objectives.

Date: 2024
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