Circular economy practices in SMEs: aligning model of green economic incentives and environmental commitment

I. Wayan Edi Arsawan, Viktor Koval, Dwi Suhartanto, Ni Kadek Dessy Hariyanti, Natalіia Polishchuk and Viktoriia Bondar

International Journal of Productivity and Performance Management, 2023, vol. 73, issue 3, 775-793

Abstract: Purpose - The present study aims to examine the relationship between green economic incentives (GEIs) and environmental commitment (EC) as drivers of the circular economy (CE) practices in small and medium enterprises (SMEs). Design/methodology/approach - A cross-sectional study of 594 assistant managers and SME managers was used while data were analyzed through Smart PLS. Findings - The results showed that GEIs positively affect the SMEs' EC and the CE practice model. Furthermore, EC is the mediator between GEIs and the three CE practices: internal environmental management, eco-design and corporate asset management and recovery (CAM&R). Practical implications - The present study provided a basis for understanding the relevance of SMEs' CE practices and designing a strategic plan for its implementation. Also, it provides insight into that collaboration between triple helix (the government, SMEs and the community) is needed in increasing environmental awareness toward sustainability. Originality/value - This study enhanced the natural resource-based view (NRBV), describing the mechanisms that view GEIs and EC as pollution prevention in CE practice.

Keywords: Green economic incentives; Environmental commitment; Internal environmental management; Eco-design; Corporate asset management and recovery; Circular economy practices (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:ijppm-03-2022-0144

DOI: 10.1108/IJPPM-03-2022-0144

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