Circular economy (CE) has a huge potential to overcome sustainability challenges. The EU and several national governments have been urging firms for CE implementation. However, to date, most firms are failing in translating the CE concept into their business operations. Some scholars point out that firms may attain CE objectives through dynamic capabilities. To empirically investigate whether or not dynamic capabilities facilitate CE implementation, we analyzed a sample of 220 manufacturing firms in Italy through partial least squares structural equation modeling (PLS-SEM). Our PLS-SEM analysis shows that sensing, seizing, and reconfiguring capabilities and their underlying organizational routines significantly facilitate CE implementation. This paper contributes to the literature in the following ways. Firstly, this paper presents the measurement scales of dynamic capabilities and demonstrates how to operationalize a reflective-formative hierarchical component model (HCM) of dynamic capabilities in PLS-SEM. Secondly, this paper highlights the key capabilities and organizational routines through which firms can identify and pursue CE opportunities.

Sensing, seizing, and reconfiguring: Key capabilities and organizational routines for circular economy implementation

Khan, Owais
;
2021-01-01

Abstract

Circular economy (CE) has a huge potential to overcome sustainability challenges. The EU and several national governments have been urging firms for CE implementation. However, to date, most firms are failing in translating the CE concept into their business operations. Some scholars point out that firms may attain CE objectives through dynamic capabilities. To empirically investigate whether or not dynamic capabilities facilitate CE implementation, we analyzed a sample of 220 manufacturing firms in Italy through partial least squares structural equation modeling (PLS-SEM). Our PLS-SEM analysis shows that sensing, seizing, and reconfiguring capabilities and their underlying organizational routines significantly facilitate CE implementation. This paper contributes to the literature in the following ways. Firstly, this paper presents the measurement scales of dynamic capabilities and demonstrates how to operationalize a reflective-formative hierarchical component model (HCM) of dynamic capabilities in PLS-SEM. Secondly, this paper highlights the key capabilities and organizational routines through which firms can identify and pursue CE opportunities.
File in questo prodotto:
File Dimensione Formato  
Sensing, seizing, and reconfiguring. Key capabilities and organizational routines for circular economy implementation.pdf

non disponibili

Tipologia: Versione dell'editore
Licenza: Accesso chiuso-personale
Dimensione 950.79 kB
Formato Adobe PDF
950.79 kB Adobe PDF   Visualizza/Apri

I documenti in ARCA sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10278/3751328
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 70
  • ???jsp.display-item.citation.isi??? 65
social impact