Circular economy practices in SMEs: aligning model of green economic incentives and environmental commitment
International Journal of Productivity and Performance Management
ISSN: 1741-0401
Article publication date: 13 April 2023
Issue publication date: 6 March 2024
Abstract
Purpose
The present study aims to examine the relationship between green economic incentives (GEIs) and environmental commitment (EC) as drivers of the circular economy (CE) practices in small and medium enterprises (SMEs).
Design/methodology/approach
A cross-sectional study of 594 assistant managers and SME managers was used while data were analyzed through Smart PLS.
Findings
The results showed that GEIs positively affect the SMEs' EC and the CE practice model. Furthermore, EC is the mediator between GEIs and the three CE practices: internal environmental management, eco-design and corporate asset management and recovery (CAM&R).
Practical implications
The present study provided a basis for understanding the relevance of SMEs' CE practices and designing a strategic plan for its implementation. Also, it provides insight into that collaboration between triple helix (the government, SMEs and the community) is needed in increasing environmental awareness toward sustainability.
Originality/value
This study enhanced the natural resource-based view (NRBV), describing the mechanisms that view GEIs and EC as pollution prevention in CE practice.
Keywords
Acknowledgements
The authors expand their gratitude to the reviewers for their valuable and insightful comments, feedback, and recommendations for the paper improvements.
Funding: Thank you to the Ministry of Education and Cultural, Research Technology and Higher Education of the Republic of Indonesia, Directorate of Research, Technology and Community Service (DRTPM) for the research grant no. 085/SPK/D4/PPK.01.APTV/VII/2022 and 3163/PL8/PG/2022.
Citation
Arsawan, I.W.E., Koval, V., Suhartanto, D., Hariyanti, N.K.D., Polishchuk, N. and Bondar, V. (2024), "Circular economy practices in SMEs: aligning model of green economic incentives and environmental commitment", International Journal of Productivity and Performance Management, Vol. 73 No. 3, pp. 775-793. https://doi.org/10.1108/IJPPM-03-2022-0144
Publisher
:Emerald Publishing Limited
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