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Digital platforms, innovation networks, and institutional support in circular economy adoption: A moderated mediation analysis in Emerging Economies

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  • Sadiq, Muhammad
  • Chau, Ka Yin
  • Moslehpour, Massoud
  • Brezina, Ivan
  • Leong, Mei Kei

Abstract

The study explores how digital platform integration, innovation network strength, and institutional support for sustainability affect the circular economy adoption (CEA) through innovation ecosystem dynamism (IED), where digital transformation readiness (DTR) acts as a moderator in Cambodia and Vietnam. A cross-sectional quantitative method was used to gather information from 900 respondents, 450 each from country. Findings denote that digital platform, innovation networks, and institutional support have a significant effect on IED, which consequently enhances CEA. DTR enhances these relations directly and indirectly, which demonstrates its significance in circular transformation. The comparisons across countries demonstrate that there are differences in contexts related to a circular economy transition. The effects on CEA in Vietnam are more consistent across all paths and, as a result, the effect of digital platform and IED is stronger. The mediating role of innovation network and institutional support on IED is greater in Vietnam because of the moderation of DTR. The relationship and moderation effect in Cambodia are significantly lower, but not negligible, which suggests that there are discrepancies in structural and digital readiness. These contextual differences indicate how digital and institutional maturity can shape the resource orchestration towards sustainability. The research advances theory by integrating digital transformation, innovation ecosystems, and institutional support into a new, moderated mediation framework. In Vietnam, policymakers and managers should take advantage of more advanced digital platforms and stable policies to accelerate CEA. In Cambodia, investment in digital infrastructure and institutional support is essential to overcome structural barriers and boost CEA. As one of the first empirical studies using a moderated mediation model in trans-country Southeast Asia, this research demonstrates how digital preparedness shapes circular transitions.

Suggested Citation

  • Sadiq, Muhammad & Chau, Ka Yin & Moslehpour, Massoud & Brezina, Ivan & Leong, Mei Kei, 2026. "Digital platforms, innovation networks, and institutional support in circular economy adoption: A moderated mediation analysis in Emerging Economies," Technology in Society, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:teinso:v:85:y:2026:i:c:s0160791x25003768
    DOI: 10.1016/j.techsoc.2025.103186
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