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Circular economy practices, green innovation and financial performance: The moderating role of big data analytics

Author

Listed:
  • Khac Hieu Nguyen

    (HCMC University of Technology and Education)

  • Thi Anh Van Nguyen

    (HCMC University of Technology and Education)

  • Trang Thi Huyen Dang

    (Van Lang University)

  • Sinh Duc Hoang

    (International University, Vietnam National University Ho Chi Minh City)

Abstract

Environmental pollution and resource degradation have prompted researchers and policymakers to seek solutions. Circular economy practices (CEP) can help enterprises reduce emissions into the environment and move towards sustainable development. CEP has been studied widely in developed countries but less studied in developing countries due to the limited application of CEP in enterprises and the limitation of data. This paper aims to analyse the effect of CEP on financial performance, including revenue, profit and ROA. We also analyse the mediating role of green innovation and the moderating role of big data analytics in the relationship between CEP and financial performance. The natural resource based view (NRBV) theory is used to explain the relationship between variables and establish research hypotheses. We collected data from 413 Vietnamese manufacturing enterprises and used the regression method to test the research hypotheses. The results show that CEP positively impacts financial performance through the mediating role of green innovation. Besides, big data analytics also positively impacts the relationship between CEP and green innovation. In addition to the main results above, digital transformation positively impacts financial performance, but quality management practices do not affect financial performance. The research results are empirical evidence for enterprises considering implementing CEP to move towards sustainable development.

Suggested Citation

  • Khac Hieu Nguyen & Thi Anh Van Nguyen & Trang Thi Huyen Dang & Sinh Duc Hoang, 2025. "Circular economy practices, green innovation and financial performance: The moderating role of big data analytics," E&M Economics and Management, Technical University of Liberec, Faculty of Economics, vol. 28(3), pages 1-16, September.
    • Handle: RePEc:bbl:journl:v:28:y:2025:i:3:p:1-16
    DOI: 10.15240/tul/001/2025-5-014
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    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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