Can the adoption of circular economy practices foster supply chain resilience and performance improvements?

Roberta Pellegrino (), Barbara Gaudenzi, Luca Fraccascia, Andrea Genovese and Luigi Jesus Basile ()
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Roberta Pellegrino: Polytechnic University of Bari / Politecnico di Bari
Barbara Gaudenzi: UNIVR - Università degli studi di Verona = University of Verona
Luca Fraccascia: UNIROMA - Università degli Studi di Roma "La Sapienza" = Sapienza University [Rome], University of Twente
Andrea Genovese: Sheffield University Management School - University of Sheffield [Sheffield]
Luigi Jesus Basile: LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]

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Abstract: While a growing literature is showing interest in the circular economy ( CE ) paradigm, there is still a lack of consensus on whether the adoption of CE practices can help to cope with supply risks arising from an increasingly uncertain business environment in order to increase supply chain resilience (SCRES) and improve a firm's performance. Through a survey of Italian enterprises engaged with CE practices, this study aims to fill this literature gap, investigating whether the adoption of CE practices can initiate a path of increased SCRES, which can lead firms to improve their overall performance, thus proactively responding to environments characterised by high levels of supply risk. This study contributes to the debates about the paths connecting CE practices and firms' performance, especially in the context of vulnerabilities and disturbances, empirically demonstrating how firms might exploit the potential of CE by investing in SCRES. This study sheds light on the relationship between CE and SCRES, particularly underlying the most relevant paths of relationships between CE and those SCRES capabilities that can lead to performance improvements, particularly when the level of supply risk increases.

Keywords: Supply risk; Supply chain resilience; Raw material risk; PLS SEM; Firm's performance; Circular economy (search for similar items in EconPapers)
Date: 2025
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Published in Business Strategy and the Environment, In press, ⟨10.1002/bse.70193⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05262734

DOI: 10.1002/bse.70193

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