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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
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