Stakeholder Pressure Engaged with Circular Economy Principles and Economic and Environmental Performance

The study aims to investigate the impacts of internal and external stakeholder pressures on the adoption of circular economy (CE) principles. The study explores the primary barriers to and causes (external or internal stakeholder pressures) of CE’s transition across Mexico and explores the effects o...

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Bibliographic Details
Published in:Sustainability 2022-12, Vol.14 (23), p.16302
Main Authors: Hernández-Arzaba, Juan Cristóbal, Nazir, Sarfraz, Leyva-Hernández, Sandra Nelly, Muhyaddin, Sanar
Format: Article
Language:English
Subjects:
Circular economy
Consumption
Economics
Environment
Environmental impact
External pressure
Externality
Food waste
Literature reviews
Natural resources
NGOs
Nongovernmental organizations
Principles
Stakeholders
Structural models
Sustainability
Sustainable development
Value creation
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Summary:The study aims to investigate the impacts of internal and external stakeholder pressures on the adoption of circular economy (CE) principles. The study explores the primary barriers to and causes (external or internal stakeholder pressures) of CE’s transition across Mexico and explores the effects of stakeholder pressures (internal and external) on the adoption of CE principles on economic and environmental performance. For this, data were collected from 433 respondents using a structured questionnaire. For analysis, the study used the PLS-SEM technique to examine internal and external stakeholders as barriers and motivators of economic and environmental performance through CE principles. Both the structural model and the measurement model were assessed. As well as mediation analysis, the direct and indirect effects were determined. The study found that economic (β = 0.178, p = 0.000) and environmental performance (β = 0.233, p = 0.000) is affected by most external stakeholders through the adoption of circular economy principles. Although the internal stakeholders don’t affect the environmental performance (β = 0.040, p = 0.492), with the adoption of circular economy principles mediating the relationship, internal stakeholders encourage environmental performance (β = 0.201, p = 0.000). The study motivates the public, non-governmental organisations (NGOs) and the government to adopt CE principles for the achievement of economic and environmental performance and participation in the sustainable development agenda.
ISSN:2071-1050
2071-1050
DOI:10.3390/su142316302