The circular economy and firm performance: The mediating role of environmental supply chain cooperation

Abstract

In recent years, the circular economy has gained prominence as a possible approach of tackling environmental and economic sustainability challenges. The purpose of this study is to look into the relationship between the circular economy and company performance, as well as the role of environmental supply chain cooperation in mediating that relationship. On a sample of 350 organizations, this study analyzes data using structural equation modeling with partial least squares (SEM-PLS). According to the findings, the circular economy has a positive impact on firm performance, which is mediated in part by environmental supply chain collaboration. The findings of this study contribute to the current literature on the circular economy and corporate success by providing empirical evidence of the mediating effect of environmental supply chain collaboration. Because they underscore the necessity of developing and maintaining environmentally friendly supply chain partnerships, the findings have practical value for organizations striving to apply circular economy ideas.