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Measuring the impact of circular economy performance on financial performance: The moderating role of stakeholder engagement

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  • Benedetta Esposito
  • Daniela Sica
  • Stefania Supino
  • Ornella Malandrino

Abstract

This paper investigates whether and to what extent circular economy performance affects the financial performance of a global sample of listed agri‐food firms. Furthermore, the potential moderating role of stakeholder engagement in empowering this relationship has been tested. A circular economy performance index has been developed based on Environmental Social and Governance scores reclassified in the light of the reuse, reduce, recovery and recycling (4R) paradigm. Then, a multivariate regression model from 2015 to 2022 has been carried out. A broader theoretical framework has been adopted, combining the natural resource‐based view and stakeholder theory. The results show a positive relationship between the circular economy performance, the financial performance and the boosting function played by stakeholder engagement. The study findings provide stimuli for academics and managers to reflect on the profitability of the circular economy and the pivotal role of stakeholder engagement in giving a significant impulse to the circular transition.

Suggested Citation

  • Benedetta Esposito & Daniela Sica & Stefania Supino & Ornella Malandrino, 2024. "Measuring the impact of circular economy performance on financial performance: The moderating role of stakeholder engagement," Business Strategy and the Environment, Wiley Blackwell, vol. 33(6), pages 5109-5126, September.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:6:p:5109-5126
    DOI: 10.1002/bse.3744
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    Cited by:

    1. Marcelo Fuentes & Moira Negrete & Sebastián Herrera‐León & Andrzej Kraslawski, 2024. "Links between the actors and mining activities related to the implementation of sustainable development principles," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 6763-6787, December.
    2. Abednego Osei & Naiping Zhu & Hela Borgi & Joana Cobbinah, 2025. "Empowering Sustainable Production: Firm Governance, Finance Strategies, and Tech‐Innovation in Advancing Circular Economy for SDG 12 in the US, China and Japan," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(4), pages 5282-5307, August.
    3. Isabel‐María García‐Sánchez & Saudi‐Yulieth Enciso‐Alfaro, 2025. "Women and circular transition in agri‐food industry: The commitment to gender diversity as an engine of change," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(1), pages 1044-1067, February.
    4. Prince Brefo Boakye & John Yaw Akparep & Andrews Salakpi, 2025. "Enhancing Environmental Quality through Board Dynamics: The Role of Environmental Regulations in Advancing Circular Economy in the SSA Region," Circular Economy and Sustainability, Springer, vol. 5(3), pages 1757-1783, June.
    5. Sun, Lihua & Bai, Chunguang & Sarkis, Joseph, 2025. "How do circular economy and blockchain technology adoption relate to firm financial performance?," International Journal of Production Economics, Elsevier, vol. 285(C).
    6. Maione, Gennaro & Supino, Stefania & Grimaldi, Mara & Troisi, Orlando, 2025. "Exploring the political-institutional perspective of sustainable consumer behavior within the circular economy: a structural equation modeling approach from nudge theory," Socio-Economic Planning Sciences, Elsevier, vol. 100(C).

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