Do dynamic capabilities matter? A study on environmental performance and the circular economy in European certified organisations

Abstract

Organisations face barriers in the transition towards a circular economy. Environmental management systems have often been adopted to tackle environmental challenges, but, more recently, scholars have proposed dynamic capabilities as a strategy to foster circular economy initiatives. Considering the level of internalisation of the environmental management system, we investigated the contribution of dynamic capabilities to organisation performance and circular economy implementation. Using partial least squares structural equation modelling, we analysed more than 800 European organisations registered with the Eco-Management and Audit Scheme. Our results proved that dynamic capabilities contribute to the internalisation of the environmental management system, which consequently improves the overall organisation performance and circular economy adoption. In addition, while dynamic capabilities directly influence the circular economy and environmental performance of an organisation, EMAS internalisation is crucial for a better economic performance and environmental reputation. Lastly, we assessed the contribution of sensing, seizing and reconfiguring capabilities to the internalisation of the environmental management standard proving their crucial role in the integration of the standard's requirements. Our study highlights the scarce linkages between the Eco-Management and Audit Scheme and the circular economy by suggesting how organisations can identify and pursue circular economy opportunities through dynamic capabilities.

Jump‐starting, diffusing, and sustaining the circular economy

“…The article contributed by Marrucci et al (2022) analyzes more than 800 European organizations registered with the eco‐management and audit scheme. The scheme incorporates life cycle thinking in its requirements and embraces the circular economy principles.…”

Sustainable banking initiatives, environmental disclosure and financial performance: The moderating impact of corporate governance mechanisms

“…For instance, policymakers and various governments are increasingly exhibiting greater concern about the risks of a severe climate crisis on the environment. In response to these challenges, national governments and supra‐national bodies are displaying growing concern in attending to these risks by instituting a number of sustainability policies (Adu et al, 2021; Baboukardos, 2018; Marrucci et al, 2022). The UN has a well‐defined sustainable development policy centred on 17 broad ‘Sustainable Development Goals’ (SDGs), with 2030 set as the time limit for achieving them.…”

Outsourcing logistics operations in circular economy towards to sustainable development goals

“…Sustainable development considers three dimensions: economic, environmental, and social. Therefore, most of the operations in manufacturing companies in the sustainable area face challenges with the mentioned three (Hong et al, 2019; Marrucci et al, 2022). Today, despite the fact that companies try to get the economic profit of the supply chain, managers and researchers focus on environmental damages and social issues in the supply chain (Zarbakhshnia, Kannan, et al, 2020).…”