What the study found
Circular economy adoption was reported to have a significant positive relationship with sustainable business performance in Indian automobile manufacturing firms. The study also reports indirect effects through green innovation and corporate social responsibility, with regulatory pressure strengthening the effect.
Why the authors say this matters
The authors conclude that the findings support the role of institutional enforcement in sustainability transitions. They also describe the study as providing theoretical and managerial implications, along with context-specific validation of a circular economy–sustainable business performance framework in an emerging economy.
What the researchers tested
The researchers studied 412 industry professionals in the Indian automobile manufacturing sector. They used survey data and a hybrid framework combining decision-making trial and evaluation laboratory (DEMATEL), partial least squares structural equation modeling (PLS-SEM), and artificial neural networks (ANN), with circular economy adoption as the main predictor, green innovation and corporate social responsibility as mediators, and regulatory pressure as a moderator.
What worked and what didn't
The abstract reports that circular economy adoption significantly and positively influenced sustainable business performance both directly and indirectly through green innovation and corporate social responsibility. Regulatory pressure further amplified this effect, and DEMATEL identified circular economy adoption and regulatory pressure as primary causal drivers. ANN ranked circular economy adoption as the most influential predictor of sustainable business performance.
What to keep in mind
The study is limited by its cross-sectional design and its focus on a single industry. The abstract says future research should use longitudinal, multi-sectoral, and cross-country approaches to improve generalizability and model refinement.
Key points
- Circular economy adoption was found to be positively associated with sustainable business performance.
- Green innovation and corporate social responsibility were reported as mediators of this relationship.
- Regulatory pressure was reported to strengthen the circular economy–performance link.
- DEMATEL identified circular economy adoption and regulatory pressure as main causal drivers.
- ANN ranked circular economy adoption as the strongest predictor of sustainable business performance.
Disclosure
- Research title:
- Circular economy adoption is linked to better sustainable business performance
- Authors:
- Saiprasad Potharaju, Bharati Wukkadada, Gitu Nijhawan, Seema Aparaj, Kamal Sharma, Nageswara Rao Lakkimsetty, Madhu Latha Veerapaneni, Amir Prasad Behera
- Institutions:
- Symbiosis International University, K. J. Somaiya Hospital & Research Centre, K J Somaiya Medical College, University of Delhi, Dr. Hari Singh Gour University, Technical Solutions (United States), American University of Ras Al Khaimah, Koneru Lakshmaiah Education Foundation, Centurion University of Technology and Management
- Publication date:
- 2026-01-30
- OpenAlex record:
- View
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