IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v184y2023i1d10.1007_s10551-022-05122-0.html
   My bibliography  Save this article

What Motivates Entrepreneurs into Circular Economy Action? Evidence from Japan and Finland

Author

Listed:
  • Savu Rovanto

    (Aalto University School of Business
    Waseda University)

  • Max Finne

    (Aalto University School of Business)

Abstract

This study investigated entrepreneurs’ motivations to implement circular economy (CE) practices and the ways in which their approaches to CE practices differed by their sociocultural context. The research aimed to contrast the contemporary instrumental perspective on CE through an ecologically dominant logic. The empirical analysis focused on Finland and Japan, two countries with distinct sociocultural contexts but similar regulatory environments regarding the CE. The study analysed entrepreneurs’ motivations towards the CE through self-determination theory that makes a distinction between different levels of internalization in motivations. The Finnish entrepreneurs were characterised by more frequent intertwined intrinsic/transcendent motivations and a vocal approach to CE. The Japanese entrepreneurs’ motivations were more varied; some were intrinsically interested in the CE, while some were even unaware of the CE concept despite operating CE businesses. The Japanese entrepreneurs resorted to masking their CE businesses to better relate with the surrounding linear system. The study shows how the individualistic Finnish culture fostered progress on the CE, while the collectivistic Japanese culture emphasised the need for relatedness and caused stagnation in the CE in its society.

Suggested Citation

  • Savu Rovanto & Max Finne, 2023. "What Motivates Entrepreneurs into Circular Economy Action? Evidence from Japan and Finland," Journal of Business Ethics, Springer, vol. 184(1), pages 71-91, April.
    • Handle: RePEc:kap:jbuset:v:184:y:2023:i:1:d:10.1007_s10551-022-05122-0
    DOI: 10.1007/s10551-022-05122-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-022-05122-0
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-022-05122-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Levänen, Jarkko & Lyytinen, Tatu & Gatica, Sebastian, 2018. "Modelling the Interplay Between Institutions and Circular Economy Business Models: A Case Study of Battery Recycling in Finland and Chile," Ecological Economics, Elsevier, vol. 154(C), pages 373-382.
    2. Jijun Gao & Pratima Bansal, 2013. "Instrumental and Integrative Logics in Business Sustainability," Journal of Business Ethics, Springer, vol. 112(2), pages 241-255, January.
    3. Per Davidsson & Frédéric Delmar & Johan Wiklund, 2006. "Entrepreneurship and the Growth of Firms," Books, Edward Elgar Publishing, number 3971.
    4. Francesca Ciulli & Ans Kolk & Siri Boe-Lillegraven, 2020. "Circularity Brokers: Digital Platform Organizations and Waste Recovery in Food Supply Chains," Journal of Business Ethics, Springer, vol. 167(2), pages 299-331, November.
    5. Renzo Junior & Peter Best & Julie Cotter, 2014. "Sustainability Reporting and Assurance: A Historical Analysis on a World-Wide Phenomenon," Journal of Business Ethics, Springer, vol. 120(1), pages 1-11, March.
    6. Charles Yuji Horioka, 2021. "Is the selfish life-cycle model more applicable in Japan and, if so, why? A literature survey," Review of Economics of the Household, Springer, vol. 19(1), pages 157-187, March.
    7. Esben Rahbek Gjerdrum Pedersen & Wencke Gwozdz & Kerli Kant Hvass, 2018. "Exploring the Relationship Between Business Model Innovation, Corporate Sustainability, and Organisational Values within the Fashion Industry," Journal of Business Ethics, Springer, vol. 149(2), pages 267-284, May.
    8. 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.
    9. Thomas J. Kull & Josip Kotlar & Martin Spring, 2018. "Small and Medium Enterprise Research in Supply Chain Management: The Case for Single†Respondent Research Designs," Journal of Supply Chain Management, Institute for Supply Management, vol. 54(1), pages 23-34, January.
    10. Ida K. Rovanto & Anu Bask, 2021. "Systemic circular business model application at the company, supply chain and society levels—A view into circular economy native and adopter companies," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1153-1173, February.
    11. Josep Rosanas, 2008. "Beyond Economic Criteria: A Humanistic Approach to Organizational Survival," Journal of Business Ethics, Springer, vol. 78(3), pages 447-462, March.
    12. Frédéric Delmar & Johan Wiklund & Per Davidsson, 2006. "Entrepreneurship and the Growth of Firms," Post-Print hal-01892801, HAL.
    13. Frédéric Delmar & Johan Wiklund & Per Davidsson, 2006. "Entrepreneurship and the Growth of Firms," Post-Print hal-01892798, HAL.
    14. Susan van Schie & Arthur Gautier & Anne-Claire Pache & Stefan T. Güntert, 2019. "What Keeps Corporate Volunteers Engaged: Extending the Volunteer Work Design Model with Self-determination Theory Insights," Journal of Business Ethics, Springer, vol. 160(3), pages 693-712, December.
    15. Alan Murray & Keith Skene & Kathryn Haynes, 2017. "The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context," Journal of Business Ethics, Springer, vol. 140(3), pages 369-380, February.
    16. Frank Montabon & Mark Pagell & Zhaohui Wu, 2016. "Making Sustainability Sustainable," Journal of Supply Chain Management, Institute for Supply Management, vol. 52(2), pages 11-27, April.
    17. Kirchherr, Julian & Reike, Denise & Hekkert, Marko, 2017. "Conceptualizing the circular economy: An analysis of 114 definitions," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 221-232.
    18. David Griggs & Mark Stafford-Smith & Owen Gaffney & Johan Rockström & Marcus C. Öhman & Priya Shyamsundar & Will Steffen & Gisbert Glaser & Norichika Kanie & Ian Noble, 2013. "Sustainable development goals for people and planet," Nature, Nature, vol. 495(7441), pages 305-307, March.
    19. Zahir Dossa & Katrin Kaeufer, 2014. "Understanding Sustainability Innovations Through Positive Ethical Networks," Journal of Business Ethics, Springer, vol. 119(4), pages 543-559, February.
    20. Angeloantonio Russo & Antonio Tencati, 2009. "Formal vs. Informal CSR Strategies: Evidence from Italian Micro, Small, Medium-sized, and Large Firms," Journal of Business Ethics, Springer, vol. 85(2), pages 339-353, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marzena Smol & Paulina Marcinek & Joanna Duda, 2024. "Circular Business Models (CBMs) in Environmental Management—Analysis of Definitions, Typologies and Methods of Creation in Organizations," Sustainability, MDPI, vol. 16(3), pages 1-25, January.
    2. Bals, Lydia & Huang, Feigao & Tate, Wendy L. & Rosca, Eugenia, 2023. "Creating social value at the bottom of the pyramid: Elaborating resource orchestration via social intermediaries," Journal of Business Research, Elsevier, vol. 168(C).
    3. Akvan Gajanayake & Oanh Thi‐Kieu Ho & Usha Iyer‐Raniga, 2024. "Motivations and drivers for adopting sustainability and circular business strategies in businesses in Victoria," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 169-179, January.
    4. Tariq Aboalhool & Ahmad Alzubi & Kolawole Iyiola, 2024. "Humane Entrepreneurship in the Circular Economy: The Role of Green Market Orientation and Green Technology Turbulence for Sustainable Corporate Performance," Sustainability, MDPI, vol. 16(6), pages 1-23, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. German Arana‐Landin & Waleska Sigüenza & Beñat Landeta‐Manzano & Iker Laskurain‐Iturbe, 2024. "Circular economy: On the road to ISO 59000 family of standards," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1977-2009, May.
    2. Bilandžić Ana & Marina Jeger & Šarlija Nataša, 2016. "Dealing with Interpretability Issues in Predicting Firm Growth: Factor Analysis Approach," Business Systems Research, Sciendo, vol. 7(2), pages 23-34, September.
    3. Stefano Bianchini & Giulio Bottazzi & Federico Tamagni, 2017. "What does (not) characterize persistent corporate high-growth?," Small Business Economics, Springer, vol. 48(3), pages 633-656, March.
    4. Alex Coad & Christina Guenther, 2012. "Age, diversification and survival in the German machine tool industry, 1953-2002," Papers on Economics and Evolution 2011-23, Philipps University Marburg, Department of Geography.
    5. Elert, Niklas & Stam, Erik & Stenkula, Mikael, 2019. "Intrapreneurship and Trust," Working Paper Series 1280, Research Institute of Industrial Economics.
    6. David Gibbs & Kirstie O'Neill, 2014. "Rethinking Sociotechnical Transitions and Green Entrepreneurship: The Potential for Transformative Change in the Green Building Sector," Environment and Planning A, , vol. 46(5), pages 1088-1107, May.
    7. Maria Tunberg & Alistair R. Anderson, 2020. "Growing a small firm; experiences and managing difficult processes," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1445-1463, December.
    8. Michael Sheppard, 2020. "The relationship between discretionary slack and growth in small firms," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 195-219, March.
    9. Stephan Weemaes & Johan Bruneel & Ann Gaeremynck & Jonas Debrulle, 2022. "Initial external knowledge sources and start-up growth," Small Business Economics, Springer, vol. 58(1), pages 523-540, January.
    10. Ahmad, Farhan & Bask, Anu & Laari, Sini & Robinson, Craig V., 2023. "Business management perspectives on the circular economy: Present state and future directions," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    11. Boris Urban & Zethu Dlamini, 2020. "Intersections between policy and institutions: a focus on enterprise growth in Swaziland," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 9(3), pages 253-275, April.
    12. Firdaus Basbeth & Ainon Ramli & Muhammad Ashlyzan Bin Razik & Rosmaizura Mohd Zain & Noorshella Bin Che Nawi, 2019. "The Role of Multi Dimensional EO in the Competitive Strategy - Performance Link," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(2), pages 20-25, July.
    13. Marta Gancarczyk, 2015. "Proces wzrostu przedsiębiorstwa w świetle podejścia zasobowego i teorii kosztów transakcyjnych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5, pages 5-31.
    14. McKeever, Edward & Jack, Sarah & Anderson, Alistair, 2015. "Embedded entrepreneurship in the creative re-construction of place," Journal of Business Venturing, Elsevier, vol. 30(1), pages 50-65.
    15. Thomas Zellweger & Philipp Sieger, 2012. "Entrepreneurial orientation in long-lived family firms," Small Business Economics, Springer, vol. 38(1), pages 67-84, January.
    16. Mary Nelima LYANI SINDANI, 2018. "Effects of Accounts Receivable Financing Practices on Growth of SMEs in Kakamega County, Kenya," Expert Journal of Finance, Sprint Investify, vol. 6, pages 1-11.
    17. Gregory S. NAMUSONGE & Mary Nelima LYANI (SINDANI) & Maurice SAKWA, 2016. "Accounts Receivable Risk Management Practices and Growth of SMEs in Kakamega County, Kenya," Expert Journal of Finance, Sprint Investify, vol. 4(1), pages 31-43.
    18. Leona Achtenhagen & Lucia Naldi & Leif Melin, 2010. "“Business Growth†—Do Practitioners and Scholars Really Talk about the Same Thing?," Entrepreneurship Theory and Practice, , vol. 34(2), pages 289-316, March.
    19. SooGeun Ahn & Jeewhan Yoon & YoungJun Kim, 2018. "The innovation activities of small and medium-sized enterprises and their growth: quantile regression analysis and structural equation modeling," The Journal of Technology Transfer, Springer, vol. 43(2), pages 316-342, April.
    20. Renata Dana Nițu-Antonie & Emőke-Szidónia Feder & Valentin Partenie Munteanu, 2017. "Macroeconomic Effects of Entrepreneurship from an International Perspective," Sustainability, MDPI, vol. 9(7), pages 1-21, July.

    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:kap:jbuset:v:184:y:2023:i:1:d:10.1007_s10551-022-05122-0. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.