Adoption of Circular Economy by Construction Industry SMEs: Organisational Growth Transition Study

Iniobong Beauty John (), Samuel A. Adekunle and Clinton O. Aigbavboa
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Iniobong Beauty John: Department of Quantity Surveying, Faculty of Environmental Sciences, University of Lagos, Lagos 100213, Nigeria
Samuel A. Adekunle: SARChl in Sustainable Construction Management and Leadership in the Built Environment, Faculty of Engineering and the Built Environment, University of Johannesburg, Johannesburg 2006, South Africa
Clinton O. Aigbavboa: SARChl in Sustainable Construction Management and Leadership in the Built Environment, Faculty of Engineering and the Built Environment, University of Johannesburg, Johannesburg 2006, South Africa

Sustainability, 2023, vol. 15, issue 7, 1-13

Abstract: A megatrend in the business environment poised at practically entrenching sustainability while ensuring global business competitiveness is viewed as a circular economy. At the firm level, circular economy practices distinguish firms for excellent product and service delivery, thus ensuring competitive advantage. The construction firm of the future will practice circular economy while adopting sustainable technology. This study is focused on assessing organisational growth transition among small and medium construction enterprises. A quantitative approach was adopted and structured questionnaires were administered among SME construction firms. The findings reveal the critical factors affecting organisational growth and transition in achieving a circular economy include availability of logistics infrastructure and firm’s market share, among others. Factor analysis indicated PCA extractions showing the component’s rotation indicating four structure components in the variables. The study named the four clusters required for achieving organisational growth transition as: firm positioning for competitive advantage, personnel management, service delivery and government policy and support. The study provides a foundation for other organisational growth transition studies stemming from circular economy adoption among construction industry SMEs.

Keywords: circular economy; competitive advantage; construction firms; developing countries; organisational growth transition; SMEs (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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