Circular economy practices in manufacturing SMEs: A perspective of environmental management in developing countries

Abstract

This study presents the perspective of developing countries regarding the potential role of green human capital (GHC) and green environmental strategic capabilities (GESC) in promoting circular economy practices (CEP) among manufacturing SMEs. Moreover, the dynamics of green environmental strategic assessment (GESA) were also explored which plays its role as a mediator in this empirical model. We have collected the data from 345 managers of 123 manufacturing enterprises, including plastic products, agriculture equipment, surgical instruments, auto parts, and gas appliances. With the objective of validating the suggested framework, the results of the study confirmed all the hypotheses developed to validate direct and indirect effects for this study. The results of the study provided guidelines to managers who have strategic control over available resources to focus on GHC, GESC and GESA if they want to promote CEP. By analyzing the proposed framework, this study concludes that these variables will ease the transition from linear economy to circular economy practices for manufacturing SMEs operating in developing countries.

Keywords

• Circular economy practices
• Green human capital
• Green environmental strategic capabilities
• Green environmental strategic assessment