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Green technology adoption paving the way toward sustainable performance in circular economy: a case of Pakistani small and medium enterprises

Syed Abdul Rehman Khan (School of Engineering and Management, Xuzhou University of Technology, Xuzhou, China and Department of Business Administration, ILMA University, Karachi, Pakistan)
Zeeshan Ahmad (Department of Business Administration, Air University, Multan Campus, Islamabad, Pakistan)
Adnan Ahmed Sheikh (Department of Business Administration, Air University, Multan Campus, Islamabad, Pakistan)
Zhang Yu (School of Economics and Management, Chang'an University, Xi'an, China)

International Journal of Innovation Science

ISSN: 1757-2223

Article publication date: 23 March 2023

425

Abstract

Purpose

A rapid increase in traditional industries is creating social and environmental problems through extensive usage of natural resources and polluting the environment. A circular economy provides curative and renewing lines of action about these problems. Therefore, this study aims to examine the factors that lead toward sustainable performance in a circular economy context and empirically test the relationships between green technology adoption (GTA), circular economy principles (CEP), sustainable supply chain practices (SSCM) and sustainable performance (SP).

Design/methodology/approach

Using the well-developed governmental databases, data from 435 small and medium enterprises (SMEs) in the textile sector of Pakistan were collected and tested through AMOS using a structural equation model.

Findings

The results disclosed that GTA, CEP and SSCM have significant and positive direct relationships and facilitate improving SMEs’ SP. Circular economy entrepreneurship (CEE) and customer pressure (CP) were found to have a significant and positive influence on the relationships of GTA and CEP with SSCM.

Originality/value

The role of GTA in circular economy and the moderating effect of CEE and CP is an addition to the literature. SMEs’ GTA allows them to reuse, reduce and recycle natural resources rather than obtain new ones from the ecosystem.

Keywords

Acknowledgements

The research is supported by the National Natural Science Foundation of China (72250410375).

Citation

Khan, S.A.R., Ahmad, Z., Sheikh, A.A. and Yu, Z. (2023), "Green technology adoption paving the way toward sustainable performance in circular economy: a case of Pakistani small and medium enterprises", International Journal of Innovation Science, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJIS-10-2022-0199

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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