IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i9p3990-d1645081.html
   My bibliography  Save this article

The Role of Circular Economy Entrepreneurship, Cleaner Production, and Green Government Subsidy for Achieving Sustainability Goals in Business Performance

Author

Listed:
  • Ali Mamash

    (Department of Business Administration, University of Mediterranean Karpasia, via Mersin 10, Lefkosa 33010, Turkey)

  • Kolawole Iyiola

    (Department of Business Administration, University of Mediterranean Karpasia, via Mersin 10, Lefkosa 33010, Turkey)

  • Hasan Yousef Aljuhmani

    (Department of Business Administration, University of Mediterranean Karpasia, via Mersin 10, Lefkosa 33010, Turkey)

Abstract

In response to escalating environmental concerns and regulatory demands, this study investigates how circular economy entrepreneurship contributes to sustainability-oriented business performance, with a focus on the mediating role of cleaner production and the moderating role of green government subsidies. Drawing on institutional theory, the research examines how institutional pressures shape firms’ adoption of sustainable practices within the Turkish manufacturing sector. A quantitative design was employed, using stratified random sampling to collect data from 383 firms across various industries. Structural equation modeling (PLS-SEM) was used to test the proposed relationships. The results reveal that circular economy entrepreneurship positively influences sustainability performance, primarily through the mediating effect of cleaner production practices. Furthermore, green government subsidies strengthen the impact of circular economy entrepreneurship on both cleaner production and sustainability outcomes, underscoring the importance of policy support in enhancing the effectiveness of eco-entrepreneurial initiatives. Practically, this study provides actionable insights for managers and policymakers seeking to integrate sustainability into strategic planning, technological investment, and regulatory design. By aligning entrepreneurial innovation with institutional incentives, firms can simultaneously achieve environmental responsibility and long-term competitive advantage.

Suggested Citation

  • Ali Mamash & Kolawole Iyiola & Hasan Yousef Aljuhmani, 2025. "The Role of Circular Economy Entrepreneurship, Cleaner Production, and Green Government Subsidy for Achieving Sustainability Goals in Business Performance," Sustainability, MDPI, vol. 17(9), pages 1-26, April.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:9:p:3990-:d:1645081
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/9/3990/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/9/3990/
    Download Restriction: no
    ---><---

    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:gam:jsusta:v:17:y:2025:i:9:p:3990-:d:1645081. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.