Fostering closed-loop supply chain orientation by leveraging strategic green capabilities for circular economy performance: empirical evidence from Malaysian electrical and electronics manufacturing firms
Mohd Rizaimy Shaharudin (),
Suhaiza Zailani (),
Keah-Choon Tan (),
James Cross () and
Chattrarat Hotrawaisaya ()
Additional contact information
Mohd Rizaimy Shaharudin: Universiti Teknologi MARA
Suhaiza Zailani: Universiti Malaya
Keah-Choon Tan: University of Nevada, Las Vegas
James Cross: University of Nevada, Las Vegas
Chattrarat Hotrawaisaya: Suan Sunandha Rajabhat University
Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 10, No 46, 24397-24434
Abstract:
Abstract In recent years, the concept of a circular economy (CE) has gained importance and attracted significant attention among scholars and practitioners. Research that examines the firm’s supply chain capabilities and orientation for performance is well established nonetheless still lacking in supporting the transition from a linear economy to a circular economy. The firms can foster a closed-loop supply chain orientation (CLSCO) through strategic green capabilities as an alternative obtainable to SC firms to achieve CE performance. Thus, this study is interested to examine the antecedents and outcomes of CLSCO by applying the Resource-Based View and Natural Resource-Based View theories. In total, 150 Malaysian manufacturers responded to the survey and were analysed using the SEM Lisrel method. Among the hypotheses tested, only one had no direct effect on CLSCO, and that was the recovery capacities. The remaining hypothesis indicates that CLSCO is positively affected by integration and production capabilities. In contrast, the results of CLSCO indicate that the extent of a company's CLSCO does affect its success in the circular economy. The study concludes, based on the RBV and NRBV principles, that the success of firms in optimising their resources would enable them to use the CLSCO and attain CE performance. Thus, there are numerous ways in which this study can provide practitioners with valuable research insights.
Keywords: Capability; Green; Closed-loop; Circular economy; Performance (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:
Downloads: (external link)
http://link.springer.com/10.1007/s10668-022-02832-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
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:spr:endesu:v:27:y:2025:i:10:d:10.1007_s10668-022-02832-3
Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10668
DOI: 10.1007/s10668-022-02832-3
Access Statistics for this article
Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development is currently edited by Luc Hens
More articles in Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().