Abstract:In recent years, a number of case studies of the circular economy in business have been analysed by academics. However, some areas of research are little explored at the micro level, such as the study of the characteristics of the financial resources applied to investments to introduce circular activities in businesses. Therefore, the main objective of this study is to define the resources applied to circular activities by firms. To describe the influence of financial resources on achieving a more advanced cir… Show more
“…Tiwari et al [53] showed that providing small businesses with loans at concessionary interest rates increased their access to finance hence boosted their performance. Further, Aranda-Usón et al [54] found that increasing the availability and quality of sources of finance stimulated the implementation of circular economy initiatives in businesses. Hence our second hypothesis: Hypothesis 2.…”
Section: Access To Finance and Smes' Sustainabilitymentioning
Role of the knowledge-based resources in promoting sustainability in small and medium enterprises (SMEs) is currently a topic of debate. Financial literacy has been identified as a vital knowledge resource for financial decision making, but insufficient attention has been given to how SMEs’ financial literacy affects their sustainability. Drawing upon a knowledge-based perspective, peaking order theory and dual process theory, we constructed an integrated model to examine the impact of financial literacy, access to finance and financial risk attitude on SMEs’ sustainability. The sample included 291 chief financial officers (CFOs) of SMEs in Sri Lanka. The output of structural equation modelling revealed direct positive effects of financial literacy, access to finance and financial risk attitude on sustainability. Financial literacy also emerged as a predictor of access to finance and financial risk attitude. Moreover, access to finance and financial risk attitude were found to be partial mediators of the relationship between financial literacy and SMEs’ sustainability. Theoretical implications and practical implications for policymakers, industry practitioners and academics interested in promoting sustainability amongst SMEs are discussed.
“…Tiwari et al [53] showed that providing small businesses with loans at concessionary interest rates increased their access to finance hence boosted their performance. Further, Aranda-Usón et al [54] found that increasing the availability and quality of sources of finance stimulated the implementation of circular economy initiatives in businesses. Hence our second hypothesis: Hypothesis 2.…”
Section: Access To Finance and Smes' Sustainabilitymentioning
Role of the knowledge-based resources in promoting sustainability in small and medium enterprises (SMEs) is currently a topic of debate. Financial literacy has been identified as a vital knowledge resource for financial decision making, but insufficient attention has been given to how SMEs’ financial literacy affects their sustainability. Drawing upon a knowledge-based perspective, peaking order theory and dual process theory, we constructed an integrated model to examine the impact of financial literacy, access to finance and financial risk attitude on SMEs’ sustainability. The sample included 291 chief financial officers (CFOs) of SMEs in Sri Lanka. The output of structural equation modelling revealed direct positive effects of financial literacy, access to finance and financial risk attitude on sustainability. Financial literacy also emerged as a predictor of access to finance and financial risk attitude. Moreover, access to finance and financial risk attitude were found to be partial mediators of the relationship between financial literacy and SMEs’ sustainability. Theoretical implications and practical implications for policymakers, industry practitioners and academics interested in promoting sustainability amongst SMEs are discussed.
“…However, the statistics obtained for this variable indicate that it is necessary to regulate the relationship between operational units, their management and coordination mechanisms considering the Env information in order to make the courses of action of the whole system homologous. Coordination (Crd) has also been dealt with in some contributions [17,21,29]; however, it was not identified that this function is part of the dynamics in RAMSAR sites from an integral vision and that complements the tasks of the management processes. In contrast, the proposed model suggests integrating control and regulatory mechanisms to mitigate environmental changes and allow operations at the sites under study to be congruent with the context in which they operate.…”
Section: Discussionmentioning
confidence: 99%
“…Thus, statistical analysis is highlighted in particular by means of PLS-PM, because it has been used to study multiple factors such as how financial resources [29,30], intellectual capital [31,32], and supply chain [17,[33][34][35], influence in sustainability. Also, from a causal perspective, Butler and Adamowski [11] emphasise that interventions based on group modelling can engage stakeholders with the consequence of sustainability.…”
This article explores and validates the integrated use of the viable system model (VSM) and the partial least squares path modeling (PLS-PM) approach to assess the sustainable management of RAMSAR sites carrying out economic activities. This work adopts a systems-thinking approach integrating systemic methodologies in three phases: (1) the VSM was first used to develop a conceptual model of the organisational problem; (2) PLS-PM was used to propose a construct to outline a solution, as well as to statistically validate the relationships proposed in the conceptual model; finally, (3) through the VSM, the relationships between actors were rethought in order to promote sustainable performance. The results obtained suggest that the joint use of VSM and PLS-PM is an effective approach that aids in the identification of relational and structural pathologies affecting the observed RAMSAR systems. It also proved useful to suggest that relationships can lead to the sustainable performance of the sites under study. It should be noted that the framework of systemic tools is constrained in its application to the organisational domain: assessing two RAMSAR areas in Mexico. Methodologically, this is the first application of the integrated use of VSM and PLS-PM to analyse the management and viability/sustainability of RAMSAR areas from an organisational perspective, opening a new avenue for the analysis and optimisation of management of such areas. This study provides tools to support actors and academics related to RAMSAR sites and opens up a discussion on how to rethink the organisational interactions in order to improve RAMSAR sites’ adaptive capabilities.
“…The main reason for companies to collaborate is to share the burden of environmental investment, thereby reducing business risk. [55] The following propositions thus emerge: Proposition 4 (P4). The introduction of sustainability must be associated with a strategic evolution of the value proposition, through the transition to a sustainable business model.…”
Section: From Traditional To Sustainable Business Modelsmentioning
Sustainability transition is becoming increasingly relevant at a manufacturing level, especially for resource-and energy-intensive industries. In addition, the 4.0 industry paradigm opens new opportunities in terms of sustainable development. The aim of this research is to analyze the introduction of sustainability in the corporate value proposition, through the evolution from a traditional to a sustainable business model. The business model innovation will be investigated in the case of a ceramic tile producer in the district of Sassuolo, Italy. The company has introduced several sustainability practices over the years and, through investments in Industry 4.0 technologies, is able to conduct impact assessments of its production process. The applied tool for the business model transition will be the Triple-Layered Business Model Canvas by Joyce and Paquin. The results illustrate the new company's sustainable value proposition, considering all three pillars of sustainability: environment, economy, and society. Despite the limitations resulting from the individual case study, the findings can be easily adapted to other ceramic tile companies in the sector. Besides, the paper could inspire other manufacturing companies in the drafting of a sustainable business model. The paper explores the still limited literature on the application of sustainable business models in operational scenarios.
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