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Institutional pressures and circular economy performance: The role of environmental management system and organizational flexibility in oil and gas sector

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  • Nikunj Kumar Jain
  • Abinash Panda
  • Piyush Choudhary

Abstract

The pressures to make business operations sustainable have been pushing organizations to adopt circular economy (CE) principles. With depleting fossil resources, the oil and gas (O&G) sector is pushed towards recycling limited resources available with it by leveraging CE principles. However, not many studies have been taken up how institutional pressures influence CE‐targeted environmental and economic performances. Drawing on institutional theory, this study examines the moderated‐mediation role of organization flexibility on the effects of institutional pressures on CE performance through environmental management systems (EMSs). Data are collected from 280 firms in Indian O&G sector using questionnaire‐based survey method. The study reveals that organizations leverage EMS to achieve CE performance, and flexible organizations compared with rigid ones are more effective in dealing with coercive pressures by leveraging EMS. These insights may help policymakers to formulate regulatory framework judiciously that encourages firms to adopt EMS in making their operations environmentally sustainable.

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  • Nikunj Kumar Jain & Abinash Panda & Piyush Choudhary, 2020. "Institutional pressures and circular economy performance: The role of environmental management system and organizational flexibility in oil and gas sector," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3509-3525, December.
    • Handle: RePEc:bla:bstrat:v:29:y:2020:i:8:p:3509-3525
    DOI: 10.1002/bse.2593
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    5. Chowdhury, Naimur Rahman & Paul, Sanjoy Kumar & Sarker, Tapan & Shi, Yangyan, 2023. "Implementing smart waste management system for a sustainable circular economy in the textile industry," International Journal of Production Economics, Elsevier, vol. 262(C).
    6. Cricelli, Livio & Greco, Marco & Grimaldi, Michele, 2021. "An investigation on the effect of inter-organizational collaboration on reverse logistics," International Journal of Production Economics, Elsevier, vol. 240(C).
    7. Bag, Surajit & Dhamija, Pavitra & Bryde, David J. & Singh, Rajesh Kumar, 2022. "Effect of eco-innovation on green supply chain management, circular economy capability, and performance of small and medium enterprises," Journal of Business Research, Elsevier, vol. 141(C), pages 60-72.
    8. Beatriz de Souza Mello Gonçalves & Flávio Leonel de Carvalho & Paula de Camargo Fiorini, 2022. "Circular Economy and Financial Aspects: A Systematic Review of the Literature," Sustainability, MDPI, vol. 14(5), pages 1-41, March.
    9. Maryam Afghah & Seyed Mojtaba Sajadi & Seyed Mostafa Razavi & Mohammadreza Taghizadeh‐Yazdi, 2023. "Hard dimensions evaluation in sustainable supply chain management for environmentally adaptive and mitigated adverse eco‐effect environmental policies," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 5044-5067, November.
    10. Centobelli, Piera & Cerchione, Roberto & Esposito, Emilio & Passaro, Renato & Shashi,, 2021. "Determinants of the transition towards circular economy in SMEs: A sustainable supply chain management perspective," International Journal of Production Economics, Elsevier, vol. 242(C).
    11. Nagendra Kumar Sharma & Kannan Govindan & Kuei Kuei Lai & Wen Kuo Chen & Vimal Kumar, 2021. "The transition from linear economy to circular economy for sustainability among SMEs: A study on prospects, impediments, and prerequisites," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1803-1822, May.
    12. Rodríguez-Espíndola, Oscar & Cuevas-Romo, Ana & Chowdhury, Soumyadeb & Díaz-Acevedo, Natalie & Albores, Pavel & Despoudi, Stella & Malesios, Chrisovalantis & Dey, Prasanta, 2022. "The role of circular economy principles and sustainable-oriented innovation to enhance social, economic and environmental performance: Evidence from Mexican SMEs," International Journal of Production Economics, Elsevier, vol. 248(C).
    13. Abdelmohsen A. Nassani & Nicoleta Isac & Joanna Rosak-Szyrocka & Zahid Yousaf & Mohamed Haffar, 2023. "Institutional Pressures and Circular Economy Target Performance: Are Zero Waste Practices and Enviropreneurship Worth Pursuing?," Sustainability, MDPI, vol. 15(4), pages 1-13, February.
    14. Lee Roberts & Nikoletta Georgiou & Abeer Mohamed Hassan, 2023. "Investigating biodiversity and circular economy disclosure practices: Insights from global firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1053-1069, May.
    15. Luca Marrucci & Tiberio Daddi & Fabio Iraldo, 2022. "Do dynamic capabilities matter? A study on environmental performance and the circular economy in European certified organisations," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2641-2657, September.

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