IMPACT OF CIRCULAR ECONOMY PRACTICES ON SUPPLY CHAIN SUSTAINABLE PERFORMANCE IN MANUFACTURING SMES: MEDIATING ROLE OF GREEN ENTREPRENEURIAL ORIENTATION

Abstract

This study rigorously examines the impact of circular economy practices on the sustainable firm performance of Pakistan's manufacturing SMEs, with a focus on green entrepreneurial orientation. The primary data, collected through adopted questionnaires from past studies, was meticulously analyzed. The face-to-face survey method was employed, with SME employees generously contributing their insights. The sample size of 249 was carefully selected, and structural equation modelling was applied in the SmartPLS version 3. The direct effect of circular economy practices and green entrepreneurial orientations on sustainable firm performance of manufacturing SMEs was revealed. Furthermore, the partial mediation effect of green entrepreneurial orientations between circular economy practices on sustainable firm performance of manufacturing SMEs was confirmed. The unique findings of this study, particularly the impact of circular economy practices on green entrepreneurial orientations due to higher beta values, provide practical insights for the industry. The study's theoretical foundation, the resource-based view theory (RBV), was effectively applied in the context of SMEs and the developing country of Pakistan. The implications of this study are significant, and the top management of manufacturing SMEs and policymakers should consider these variables for future policies to achieve sustainable development within the country, thereby empowering them to make informed decisions.