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2019

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When Stakeholder Pressure Drives The Circular Economy: Measuring The Mediating Role Of Innovation Capabilities, J Suresh, S Kumar Mangla, L Sunil, S Kusi-Sarpong Jan 2019

When Stakeholder Pressure Drives The Circular Economy: Measuring The Mediating Role Of Innovation Capabilities, J Suresh, S Kumar Mangla, L Sunil, S Kusi-Sarpong

Plymouth Business School

Purpose The purpose of this paper is to explore the impact of stakeholder pressures on firm’s circular economy (CE) initiatives. The organizational responses are quite heterogeneous even when the firms face similar pressure. The authors have tried to explain this heterogeneity by using innovative capability as mediating variables. Design/methodology/approach Empirical survey data from Indian manufacturing firms are obtained to test the proposed hypotheses. The hypotheses are grounded in resource-based view of the firm. The authors used structural equation modeling approach with maximum likelihood methods of approximation. Findings The results indicate that exploratory innovation positively influences the firms to adopt CE …