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How Much Does the Business Development of Circular Eco‐Efficient Practices Improve by Shaking Stakeholders up?

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  • Concepción Garces‐Ayerbe
  • Pilar Rivera‐Torres
  • Aurore Darmandieu

Abstract

European firms are currently in a process of transition toward a circular economy, which is expected to guarantee sustainable growth over time. Developing eco‐efficient practices is a necessary step in this transition. This study analyzes the impact of stakeholder engagement in a circular business ecosystem on the development of these circular eco‐efficient practices. Past literature has evidenced the impact of stakeholder environmental pressure on firm strategic decisions and outcomes. We adopt the stakeholder theory from a more recent vision, arguing that “shaking stakeholders up” within a circular ecosystem is a more advanced strategy than the traditional approach of reacting to stakeholder pressure. Using structural equation modeling, we examine the data of 14,726 European firms and their relationships with five primary stakeholder groups. The results offer theoretical and empirical support for the idea that firms can go further in adopting eco‐efficient circular practices by shaking stakeholders up, selecting them, and managing relationships with them.

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  • Concepción Garces‐Ayerbe & Pilar Rivera‐Torres & Aurore Darmandieu, 2025. "How Much Does the Business Development of Circular Eco‐Efficient Practices Improve by Shaking Stakeholders up?," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 34(4), pages 2293-2308, October.
    • Handle: RePEc:wly:buseth:v:34:y:2025:i:4:p:2293-2308
    DOI: 10.1111/beer.12768
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