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An Extended Institutional Theory Perspective on the Implementation of the Circular Economy: Empirical Insights From New Zealand Food Manufacturing Firms

Author

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  • Sitong Michelle Chen
  • Gabriel Eweje

Abstract

In a linear economic model, unsustainable production and consumption patterns are linked to negative environmental impacts. However, there is little empirical research on the performance of manufacturing firms in developing the circular economy (CE) in New Zealand. Accordingly, this study explores how the CE has been implemented in New Zealand's food manufacturing firms and the key factors that drive and prevent their CE practices. Our study used a multiple‐case study of six large food manufacturing firms that engage in CE practices in New Zealand. We found that, although these firms focused on CE principles of reducing, reusing and recycling, the recovering principle is missing. Additionally, they face multiple barriers from the three most salient institutional pillars: regulatory, socio‐cognitive and economic/supply chain. The study contributes to extended institutional theory in the CE literature by establishing an integrated framework. Our practical contribution to the practitioners is to operate the four CE concepts simultaneously by promoting the identified institutional drivers.

Suggested Citation

  • Sitong Michelle Chen & Gabriel Eweje, 2025. "An Extended Institutional Theory Perspective on the Implementation of the Circular Economy: Empirical Insights From New Zealand Food Manufacturing Firms," Business Strategy and the Environment, Wiley Blackwell, vol. 34(3), pages 2964-2992, March.
    • Handle: RePEc:bla:bstrat:v:34:y:2025:i:3:p:2964-2992
    DOI: 10.1002/bse.4117
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    References listed on IDEAS

    as
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    2. Kannan Govindan & Mia Hasanagic, 2018. "A systematic review on drivers, barriers, and practices towards circular economy: a supply chain perspective," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 278-311, January.
    3. Abraham Zhang & V. G. Venkatesh & Jason X. Wang & Venkatesh Mani & Ming Wan & Ting Qu, 2023. "Drivers of Industry 4.0-Enabled Smart Waste Management in Supply Chain Operations: A Circular Economy Perspective in China," Post-Print hal-04906911, HAL.
    4. Do, Quynh & Mishra, Nishikant & Colicchia, Claudia & Creazza, Alessandro & Ramudhin, Amar, 2022. "An extended institutional theory perspective on the adoption of circular economy practices: Insights from the seafood industry," International Journal of Production Economics, Elsevier, vol. 247(C).
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