IDEAS home Printed from https://ideas.repec.org/a/aes/amfeco/v25y2023i62p196.html
   My bibliography  Save this article

Examining Circular Economy Practices and Sustainability Performance in Knowledge-Based Companies in Iran

Author

Listed:
  • Ramin Bashir Khodaparasti

    (Urmia University, Urmia, Iran)

  • Hooshmand Bagheri Garabollagh

    (Urmia University, Urmia, Iran)

Abstract

The present study, relying on the resource- and industry-based views and stakeholders, has developed a model that shows the role of technology adoption, ways to reduce waste to zero, uncertainty in the market and green economic incentives in promoting circular economy practices, and improvement of the sustainability performance of knowledge-based companies. This paper used a quantitative research approach and a structured questionnaire tool, in which survey data was collected from managers and experts of knowledge-based companies to test hypotheses using structural equation modeling (SEM). The statistical population of the research was all managers and experts from knowledge-based companies in the field of electronic and electrical equipment production in Iran, numbering 384 people. The results showed that technology adoption, zero waste practices, and green economic incentives have a positive and significant effect on circular economy practices, while uncertainty in the market does not have a significant effect on circular economy practices. The results also showed that circular economy practices have a positive and significant effect on the sustainability performance of knowledge-based companies. In addition, the circular economy practices and the company's sustainability performance could be improved by adopting of circular economy entrepreneurship as a moderating variable.

Suggested Citation

  • Ramin Bashir Khodaparasti & Hooshmand Bagheri Garabollagh, 2023. "Examining Circular Economy Practices and Sustainability Performance in Knowledge-Based Companies in Iran," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(62), pages 196-196, February.
    • Handle: RePEc:aes:amfeco:v:25:y:2023:i:62:p:196
    as

    Download full text from publisher

    File URL: http://www.amfiteatrueconomic.ro/temp/Article_3182.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sahasranamam, Sreevas & Nandakumar, M.K. & Pereira, Vijay & Temouri, Yama, 2021. "Knowledge capital in social and commercial entrepreneurship: Investigating the role of informal institutions," Journal of International Management, Elsevier, vol. 27(1).
    2. Chunguang Bai & Joseph Sarkis & Fengfu Yin & Yijie Dou, 2020. "Sustainable supply chain flexibility and its relationship to circular economy-target performance," International Journal of Production Research, Taylor & Francis Journals, vol. 58(19), pages 5893-5910, October.
    3. Carla Gonçalves Machado & Mats Peter Winroth & Elias Hans Dener Ribeiro da Silva, 2020. "Sustainable manufacturing in Industry 4.0: an emerging research agenda," International Journal of Production Research, Taylor & Francis Journals, vol. 58(5), pages 1462-1484, March.
    4. de Jesus, Ana & Mendonça, Sandro, 2018. "Lost in Transition? Drivers and Barriers in the Eco-innovation Road to the Circular Economy," Ecological Economics, Elsevier, vol. 145(C), pages 75-89.
    5. Dey, Prasanta Kumar & Malesios, Chrysovalantis & Chowdhury, Soumyadeb & Saha, Krishnendu & Budhwar, Pawan & De, Debashree, 2022. "Adoption of circular economy practices in small and medium-sized enterprises: Evidence from Europe," International Journal of Production Economics, Elsevier, vol. 248(C).
    6. Vanessa Prieto‐Sandoval & Marta Ormazabal & Carmen Jaca & Elisabeth Viles, 2018. "Key elements in assessing circular economy implementation in small and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1525-1534, December.
    7. 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).
    8. 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).
    9. Kirchherr, Julian & Piscicelli, Laura & Bour, Ruben & Kostense-Smit, Erica & Muller, Jennifer & Huibrechtse-Truijens, Anne & Hekkert, Marko, 2018. "Barriers to the Circular Economy: Evidence From the European Union (EU)," Ecological Economics, Elsevier, vol. 150(C), pages 264-272.
    10. Donard Games & Ranggi Putri Rendi, 2019. "The effects of knowledge management and risk taking on SME financial performance in creative industries in an emerging market: the mediating effect of innovation outcomes," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-14, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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).
    2. Ahmad, Farhan & Bask, Anu & Laari, Sini & Robinson, Craig V., 2023. "Business management perspectives on the circular economy: Present state and future directions," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    3. Chowdhury, Soumyadeb & Dey, Prasanta Kumar & Rodríguez-Espíndola, Oscar & Parkes, Geoff & Tuyet, Nguyen Thi Anh & Long, Dang Duc & Ha, Tran Phuong, 2022. "Impact of Organisational Factors on the Circular Economy Practices and Sustainable Performance of Small and Medium-sized Enterprises in Vietnam," Journal of Business Research, Elsevier, vol. 147(C), pages 362-378.
    4. Govindan, Kannan, 2023. "How digitalization transforms the traditional circular economy to a smart circular economy for achieving SDGs and net zero," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 177(C).
    5. Piera Centobelli & Roberto Cerchione & Davide Chiaroni & Pasquale Del Vecchio & Andrea Urbinati, 2020. "Designing business models in circular economy: A systematic literature review and research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 29(4), pages 1734-1749, May.
    6. Nudurupati, Sai Sudhakar & Budhwar, Pawan & Pappu, Raja Phani & Chowdhury, Soumyadeb & Kondala, Mukesh & Chakraborty, Ayon & Ghosh, Sadhan Kumar, 2022. "Transforming sustainability of Indian small and medium-sized enterprises through circular economy adoption," Journal of Business Research, Elsevier, vol. 149(C), pages 250-269.
    7. Danilo Boffa & Antonio Prencipe & Armando Papa & Christian Corsi & Mario Sorrentino, 2023. "Boosting circular economy via the b-corporation roads. The effect of the entrepreneurial culture and exogenous factors on sustainability performance," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 523-561, June.
    8. Ilija Moric & Jelena Šaković Jovanović & Rajka Đoković & Sanja Peković & Đurđica Perović, 2020. "The Effect of Phases of the Adoption of the Circular Economy on Firm Performance: Evidence from 28 EU Countries," Sustainability, MDPI, vol. 12(6), pages 1-12, March.
    9. Sultan Çetin & Vincent Gruis & Ad Straub, 2021. "Towards Circular Social Housing: An Exploration of Practices, Barriers, and Enablers," Sustainability, MDPI, vol. 13(4), pages 1-23, February.
    10. Soni, Vivek & Gnekpe, Christian & Roux, Mélanie & Anand, Rashmi & Vann Yaroson, Emilia & Kumar Banwet, Devinder, 2023. "Adaptive distributed leadership and circular economy adoption by emerging SMEs," Journal of Business Research, Elsevier, vol. 156(C).
    11. Francesca Gennari, 2023. "The transition towards a circular economy. A framework for SMEs," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(4), pages 1423-1457, December.
    12. Gutberlet, Melissa & Preuss, Lutz & Thorpe, Andrea Stevenson, 2023. "Macro level matters: Advancing circular economy in different business systems within Europe," Ecological Economics, Elsevier, vol. 211(C).
    13. S.M. Mizanur Rahman & Junbeum Kim & Gilles Lerondel & Youcef Bouzidi & Laure Clerget, 2019. "Value Retention Options in Circular Economy: Issues and Challenges of LED Lamp Preprocessing," Sustainability, MDPI, vol. 11(17), pages 1-20, August.
    14. Aoife Hanley & Finn Ole Semrau, 2022. "Stepping up to the mark? Firms’ export activity and environmental innovation in 14 European countries," Industry and Innovation, Taylor & Francis Journals, vol. 29(5), pages 672-700, May.
    15. Garrido-Prada, Pablo & Lenihan, Helena & Doran, Justin & Rammer, Christian & Perez-Alaniz, Mauricio, 2021. "Driving the circular economy through public environmental and energy R&D: Evidence from SMEs in the European Union," Ecological Economics, Elsevier, vol. 182(C).
    16. Juraj Šebo & Miriam Šebová & Iztok Palčič, 2021. "Implementation of Circular Economy Technologies: An Empirical Study of Slovak and Slovenian Manufacturing Companies," Sustainability, MDPI, vol. 13(22), pages 1-17, November.
    17. Anna Avdiushchenko, 2018. "Toward a Circular Economy Regional Monitoring Framework for European Regions: Conceptual Approach," Sustainability, MDPI, vol. 10(12), pages 1-26, November.
    18. Jeff Mangers & Meysam Minoufekr & Peter Plapper & Sri Kolla, 2021. "An Innovative Strategy Allowing a Holistic System Change towards Circular Economy within Supply-Chains," Energies, MDPI, vol. 14(14), pages 1-17, July.
    19. Magdalena Rusch & Josef‐Peter Schöggl & Rupert J. Baumgartner, 2023. "Application of digital technologies for sustainable product management in a circular economy: A review," Business Strategy and the Environment, Wiley Blackwell, vol. 32(3), pages 1159-1174, March.
    20. Chedrak Chembessi & Christophe Beaurain & Geneviève Cloutier, 2022. "Analyzing Technical and Organizational Changes in Circular Economy (CE) Implementation with a TOE Framework: Insights from a CE Project of Kamouraska (Quebec)," Circular Economy and Sustainability, Springer, vol. 2(3), pages 915-936, September.

    More about this item

    Keywords

    Circular economy practices; technology adoption; zero waste practices; green economic incentives; sustainable performance of knowledge-based companies.;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aes:amfeco:v:25:y:2023:i:62:p:196. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valentin Dumitru (email available below). General contact details of provider: https://edirc.repec.org/data/aseeero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.