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The circular economy, environmental performance and environmental management systems: the role of absorptive capacity

Luca Marrucci (Luca Marrucci, Tiberio Daddi and Fabio Iraldo are all based at the Institute of Management, Sant’Anna School of Advanced Studies, Pisa, Italy)
Tiberio Daddi (Luca Marrucci, Tiberio Daddi and Fabio Iraldo are all based at the Institute of Management, Sant’Anna School of Advanced Studies, Pisa, Italy)
Fabio Iraldo (Luca Marrucci, Tiberio Daddi and Fabio Iraldo are all based at the Institute of Management, Sant’Anna School of Advanced Studies, Pisa, Italy)

Journal of Knowledge Management

ISSN: 1367-3270

Article publication date: 23 November 2021

Issue publication date: 5 September 2022

1530

Abstract

Purpose

Despite the general interest in the circular economy, organisations have difficulties in implementing circular practices. Developing absorptive capacity (ACAP) may foster circularity among organisations. The paper aims to shed light on relationship between ACAP and organisational performance.

Design/methodology/approach

To empirically investigate the contribution of ACAP in circular economy implementation, the authors analysed a European sample of more than 800 Eco-Management and Audit Scheme-registered organisations through partial least squares structural equation modelling.

Findings

The analysis demonstrates that ACAP and the underlying organisational activities of a firm significantly facilitate the implementation of a circular economy and the internalisation of an environmental management system (EMS), which consequently improve the overall performance of organisations. The authors found that the diffusion of the circular economy in the organisations’ environment does not affect their commitment to implement a circular economy.

Originality/value

The study expands the academic literature by framing the concept of the circular economy with ACAP theory, thereby highlighting the contribution of acquisition, assimilation, transformation and exploitation. The results also provide useful insights for practitioners highlighting how organisations with an environmental certification can identify and pursue opportunities deriving from a circular economy. Finally, the research contributes to the debate on the effect of internalising EMSs and how ACAP improves economic performance, environmental performance and reputation.

Keywords

Citation

Marrucci, L., Daddi, T. and Iraldo, F. (2022), "The circular economy, environmental performance and environmental management systems: the role of absorptive capacity", Journal of Knowledge Management, Vol. 26 No. 8, pp. 2107-2132. https://doi.org/10.1108/JKM-06-2021-0437

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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