Abstract:Purpose
This paper aims to define and measure the environmental capabilities that are applied when the circular economy (CE) is introduced in businesses. Founded on the dynamic capabilities theoretical approach, the study analyzes different environmental competences that firms apply during this process. Environmental management systems, corporate social responsibility, reporting and accountability and other environmental accounting practices are studied in the same analytical framework used to study the enviro… Show more
“…Some scholars argue that stakeholders' pressures positively affects the adoption of CE business models (Prieto-Sandoval et al, 2019). Scarpellini, Marín-Vinuesa, et al (2020) found that stakeholders' pressures directly affect the environmental capabilities for CE. Furthermore, such environmental capabilities mediate the relationship between stakeholders' pressures and the circular scope of a company.…”
Section: Theoretical Framework and Hypothesesmentioning
confidence: 99%
“…There are plentiful empirical studies on the relation between DCs and performance. However, research on mediating mechanisms of DCs effects is very scarce (Zhou, Zhou, Feng, & Jiang, 2019 (Scarpellini, Marín-Vinuesa, et al, 2020). Notably, Zhu, Geng, and Lai (2010) contended that CE practices are positively related to the environmental and financial performance of a company.…”
Section: Theoretical Framework and Hypothesesmentioning
Although most companies perceive that they might not be able to implement a circular economy (CE), some scholars perceive that companies may do so by developing dynamic capabilities (DCs). To empirically investigate the role of DCs in CE implementation, we analyzed a sample of 220 companies in Italy through partial least squares structural equation modeling (PLS-SEM). Our PLS-SEM analysis demonstrates that DCs and their underlying organizational activities significantly facilitate CE implementation, which consequently improves the overall performance of companies. Moreover, a circular dynamic environment (CDE) may stimulate companies towards CE implementation. This paper contributes to the literature in the following manner. First, this paper highlights how companies can identify and pursue CE opportunities. Second, this paper contributes to the debate on the role of a dynamic environment and how DCs leads to performance. Third, this paper presents the measurement scales of DCs and shows how to operationalize a hierarchical component model (HCM) in PLS-SEM.
“…Some scholars argue that stakeholders' pressures positively affects the adoption of CE business models (Prieto-Sandoval et al, 2019). Scarpellini, Marín-Vinuesa, et al (2020) found that stakeholders' pressures directly affect the environmental capabilities for CE. Furthermore, such environmental capabilities mediate the relationship between stakeholders' pressures and the circular scope of a company.…”
Section: Theoretical Framework and Hypothesesmentioning
confidence: 99%
“…There are plentiful empirical studies on the relation between DCs and performance. However, research on mediating mechanisms of DCs effects is very scarce (Zhou, Zhou, Feng, & Jiang, 2019 (Scarpellini, Marín-Vinuesa, et al, 2020). Notably, Zhu, Geng, and Lai (2010) contended that CE practices are positively related to the environmental and financial performance of a company.…”
Section: Theoretical Framework and Hypothesesmentioning
Although most companies perceive that they might not be able to implement a circular economy (CE), some scholars perceive that companies may do so by developing dynamic capabilities (DCs). To empirically investigate the role of DCs in CE implementation, we analyzed a sample of 220 companies in Italy through partial least squares structural equation modeling (PLS-SEM). Our PLS-SEM analysis demonstrates that DCs and their underlying organizational activities significantly facilitate CE implementation, which consequently improves the overall performance of companies. Moreover, a circular dynamic environment (CDE) may stimulate companies towards CE implementation. This paper contributes to the literature in the following manner. First, this paper highlights how companies can identify and pursue CE opportunities. Second, this paper contributes to the debate on the role of a dynamic environment and how DCs leads to performance. Third, this paper presents the measurement scales of DCs and shows how to operationalize a hierarchical component model (HCM) in PLS-SEM.
“…The studies aimed at understanding how the companies are integrating CE model in their activities is still limited and it is not clear how the CE activities must be reported within the company (Scarpellini et al, 2020).…”
Section: Circular Economy and Corporate Social Responsibility: Theorementioning
confidence: 99%
“…Some studied have indeed used CSR reports as a source to investigate the adherence of companies to this new model. The CE activities implemented by companies that is usually analysed in terms of "Triple Bottom line" of sustainability (Scarpellini et al, 2020), but the topic on how CSR and CE are related, is almost still unexplored.…”
Section: Circular Economy and Corporate Social Responsibility: Theorementioning
confidence: 99%
“…One interesting evidence is that the companies have entered intro collaborations with external partners to start a dialogue to discuss the role of each in CE context (Steward et al, 2018). Scarpellini et al (2020) tried to investigate how CE systems were introduced within companies in relation to the level of CSR implemented. In general, the study revealed a positive relationship between CE activities and the level of development of the CSR (Scarpellini et al, 2018).…”
The CE model assures a different approach on the relations between economy, environment and society. The CE concept have been investigated in the recent literature above all in understanding the approaches of businesses towards this new model. The paper presents a short literature review aimed at exploring how the Corporate Social Responsibility (CSR) and (CE) are analysed in literature directing attention on how the companies incorporate the CE concept in their sustainability practices. The work contributes to provide insights on how the companies are integrating the CE activities in CSR practices and shows that a deeper investigation of the topic is needed.
The role of Industry 4.0-enabled data-driven shared platform as an enabler of product-service system in the context of circular economy: a systematic literature review and future research directions. Business Strategy and Development.
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