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Effect of eco-innovation on green supply chain management, circular economy capability, and performance of small and medium enterprises

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  • Bag, Surajit
  • Dhamija, Pavitra
  • Bryde, David J.
  • Singh, Rajesh Kumar

Abstract

The social structures in organisations constitute essential enablers for the betterment of small and medium enterprises’ (SMEs) performance. Our paper explores such enablers in the context of SMEs’ contribution to the Circular Economy (CE), through the lens of institutional and dynamic capability view theories. We focus on the relationships between institutional pressures, eco-innovation, green supply chain management (GSCM) practices, CE capability, big data driven supply chains (BDSC), and performance for CE supply chains. We used a survey to collect data (n = 240) from people working in SMEs in the manufacturing sector in South Africa. Drawing from institutional theory, we find that coercive, normative, and mimetic pressures have a positive relationship with eco-innovation. Furthermore, eco-innovation is positively associated with GSCM, with these two concepts significantly related to the building of CE capability. The final element in our framework shows a positive relationship between GSCM and CE capability. Our findings reveal some nuances in terms of the relationships between the concepts. For example, whilst BDSCs have a moderating influence on the relationship between CE capability and firm performance for the CE supply chain, no such influence is evident for the relationship between GSCM practices and performance. Further work needs to focus on explaining this and other findings and on validating our theoretical framework.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jbrese:v:141:y:2022:i:c:p:60-72
    DOI: 10.1016/j.jbusres.2021.12.011
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    2. Bag, Surajit & Sabbir Rahman, Muhammad & Rogers, Helen & Srivastava, Gautam & Harm Christiaan Pretorius, Jan, 2023. "Climate change adaptation and disaster risk reduction in the garment industry supply chain network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).
    3. Luoma, Päivi & Penttinen, Esko & Tapio, Petri & Toppinen, Anne, 2022. "Future images of data in circular economy for textiles," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    4. Saumyaranjan Sahoo & Arvind Upadhyay & Anil Kumar, 2023. "Circular economy practices and environmental performance: Analysing the role of big data analytics capability and responsible research and innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6029-6046, December.
    5. John Wiredu & Qian Yang & Agyemang Kwasi Sampene & Bright Akwasi Gyamfi & Simplice A. Asongu, 2023. "The effect of green supply chain management practices on corporate environmental performance. Does supply chain competitive advantage matter?," Working Papers 23/063, European Xtramile Centre of African Studies (EXCAS).
    6. Carballo-Penela, Adolfo & Ruzo-Sanmartín, Emilio & Álvarez-González, Paula & Paillé, Pascal, 2023. "How do GHRM practices influence firms’ economic performance? A meta-analytic investigation of the role of GSCM and environmental performance," Journal of Business Research, Elsevier, vol. 165(C).
    7. Tran Thi Van Trang & Mai Ngoc Khuong, 2023. "The role of risk factors, partner compatibility, organizational creativity and co-creation value on firm performance: evidence from SMEs in Vietnam," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 41(2), pages 449-475.
    8. Yang Liu & Jing Cheng & Jingjing Dai, 2024. "Harnessing digital transformation for green innovation in energy transition: a study on R&D investments and spatial spillover in China," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-30, February.
    9. Castro-Lopez, Adrian & Iglesias, Victor & Santos-Vijande, María Leticia, 2023. "Organizational capabilities and institutional pressures in the adoption of circular economy," Journal of Business Research, Elsevier, vol. 161(C).
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    11. M. Carolina Martins Rodrigues & Raul Pommer Barbosa & Luciana Aparecida Barbieri da Rosa & Maria José Sousa & Waleska Yone Yamakawa Zavatti Campos, 2022. "Intellectual Capital of Technology-Based Incubators," Administrative Sciences, MDPI, vol. 12(4), pages 1-14, December.

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