Organizational and external influences on circular economy adoption in oil and gas: A MENA perspective

Shikhar Dua, Krishna Kumar Dadsena and Vijaya Dixit

ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, 2026, vol. 2026/1, issue 1, 257-295

Abstract:

This study employs quantitative methods to develop a Circular Economy (CE) adoption scale in the MENA oil and gas sector. Using Exploratory Factor Analysis, Confirmatory Factor Analysis, and Structural Equation Modeling, it validates theoretical constructs derived from Literature review. A comprehensive literature review of 110 articles combined with data from 230 industry workers in various Middle East and North Africa (MENA) countries were analyzed to explore antecedents to CE adoption specifically in Oil and Gas sector. Findings reveal that innovation mediates the relationship between organizational drivers and external pressures, enhancing CE practices. While organizational inclination and external pressures positively affect innovation, moderation analysis shows that external pressures do not significantly amplify the impact on CE adoption. This research contributes to academic and practical discussions on integrating sustainability in the oil and gas sector, emphasizing innovation. Future studies should expand geographic scope, diversify sampling, and assess technological impacts on CE, providing crucial insights for policymakers and strategists in resource-heavy industries.

Keywords: circular economy; adoption; innovation; external pressure; organization; quantitative (search for similar items in EconPapers)
Date: 2026
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