Eco‐innovation for circular economy and sustainability performance: Insights and evidence from manufacturing firms

Rafael Mora‐Contreras, Javier Carrillo‐Hermosilla, Giovanni Hernández‐Salazar, Luz Elba Torres‐Guevara, Andrés Mejia‐Villa and Marta Ormazabal

Business Strategy and the Environment, 2025, vol. 34, issue 1, 1231-1256

Abstract: Despite progress in the literature in understanding the relationships between barriers, drivers, and features of eco‐innovations (EIs) to promote the circular economy (CE) and improve companies' sustainability results, the evidence remains limited and diffuse. To address this gap, we investigate the effect of barriers, sources of information, and features of innovations and EIs on manufacturing companies' CE and sustainability performance. This longitudinal study used official Colombian government data from 3144 manufacturing companies (2015–2020), considering partial least squares structural equation modeling. Our results reveal that developing or adopting (eco‐) innovations with incremental features could cause a blockage in implementing high‐level CE and in improving their overall sustainability performance. Similarly, radical (eco‐) innovations need more evidence to clarify their impacts on CE and sustainability. Finally, we show that the improvement in environmental and CE performance attributed to (eco‐) innovations has a significant and positive impact on the company's economics.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/bse.4046

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:bstrat:v:34:y:2025:i:1:p:1231-1256

Ordering information: This journal article can be ordered from
http://onlinelibrary ... 1002/(ISSN)1099-0836

Access Statistics for this article

Business Strategy and the Environment is currently edited by Richard Welford

More articles in Business Strategy and the Environment from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().