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Circular economy practices in locally rooted family SMEs: the role of the socio-spatial context

Author

Listed:
  • Pablo Doucet

    (Universidad Nacional de Educación a Distancia (UNED))

  • Pablo Garrido-Prada

    (Universidad de Salamanca, IME and Department of Business Administration)

  • Javier Parra-Domínguez

    (Universidad de Salamanca, IME and Department of Business Administration)

  • Ignacio Requejo

    (Universidad de Salamanca, IME and Department of Business Administration)

  • Isabel Suárez-González

    (Universidad de Salamanca, IME and Department of Business Administration)

Abstract

This paper examines whether family-owned SMEs differ from non-family SMEs in their adoption of circular economy (CE) practices, with a focus on how these differences are shaped by socio-spatial contexts. Specifically, we investigate the role of a firm’s rural or urban location and the level of country environmental awareness. Using a sample of 13,319 SMEs, we find that family ownership increases the probability of adopting a higher number of CE practices. Furthermore, we find that the positive effect of family ownership on the adoption of CE practices is stronger in rural areas. Finally, while both family and non-family SMEs are more likely to adopt CE practices in countries with greater environmental awareness, non-family SMEs appear to be relatively more influenced by this factor. These findings offer new insights into the intricate interplay of ownership and the socio-spatial context as determinants of the adoption of CE practices in SMEs.

Suggested Citation

  • Pablo Doucet & Pablo Garrido-Prada & Javier Parra-Domínguez & Ignacio Requejo & Isabel Suárez-González, 2025. "Circular economy practices in locally rooted family SMEs: the role of the socio-spatial context," Small Business Economics, Springer, vol. 65(4), pages 2385-2406, December.
    • Handle: RePEc:kap:sbusec:v:65:y:2025:i:4:d:10.1007_s11187-025-01060-z
    DOI: 10.1007/s11187-025-01060-z
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    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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