E3S Web of Conferences (Jan 2024)

Fostering technology adoption towards sustainable-oriented innovation: Does circular economy matter?

  • Arsawan I Wayan Edi,
  • Hariyanti Ni Kadek Dessy,
  • Atmaja I Made Dwi Ari Suta,
  • Utami Made Ayu Jayanti Prita,
  • Kariati Ni Made,
  • Suryantini Ni Putu Santi

DOI
https://doi.org/10.1051/e3sconf/202455801004
Journal volume & issue
Vol. 558
p. 01004

Abstract

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The existing literature has yet to expose the linkage between circular economy and sustainability-oriented innovation, notably SMEs in developing countries. The present study focuses on recognizing the impact of technology on adopting a circular economy and its consequential effect on sustainability-oriented innovation. Responses obtained from 201 Indonesian SMEs were further examined by structural equation models to explore the direct and indirect influences among the constructs. The study demonstrates that technology adoption and circular economy underpin the implementation of sustainability-oriented innovation and mediate the linkage between technology adoption and sustainability-oriented innovation. It is a primary implication for SME managers to scale up technology investment that facilitates sustainable solutions.