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The role of dynamic capabilities in circular economy implementation and performance of companies

Author
Organization
Abstract
Although most companies perceive that they might not be able to implement a circular economy (CE), some scholars perceive that companies may do so by developing dynamic capabilities (DCs). To empirically investigate the role of DCs in CE implementation, we analyzed a sample of 220 companies in Italy through partial least squares structural equation modeling (PLS‐SEM). Our PLS‐SEM analysis demonstrates that DCs and their underlying organizational activities significantly facilitate CE implementation, which consequently improves the overall performance of companies. Moreover, a circular dynamic environment (CDE) may stimulate companies towards CE implementation. This paper contributes to the literature in the following manner. First, this paper highlights how companies can identify and pursue CE opportunities. Second, this paper contributes to the debate on the role of a dynamic environment and how DCs leads to performance. Third, this paper presents the measurement scales of DCs and shows how to operationalize a hierarchical component model (HCM) in PLS‐SEM.
Keywords
circular dynamic environment, circular economy, corporate sustainability, dynamic capabilities, organizational performance, PLS‐SEM

Citation

Please use this url to cite or link to this publication:

MLA
Khan, Owais Ur Rehman, et al. “The Role of Dynamic Capabilities in Circular Economy Implementation and Performance of Companies.” Corporate Social Responsibility and Environmental Management, 2020, doi:10.1002/csr.2020.
APA
Khan, O. U. R., Daddi, T., & Iraldo, F. (2020). The role of dynamic capabilities in circular economy implementation and performance of companies. Corporate Social Responsibility and Environmental Management. https://doi.org/10.1002/csr.2020
Chicago author-date
Khan, Owais Ur Rehman, Tiberio Daddi, and Fabio Iraldo. 2020. “The Role of Dynamic Capabilities in Circular Economy Implementation and Performance of Companies.” Corporate Social Responsibility and Environmental Management. https://doi.org/10.1002/csr.2020.
Chicago author-date (all authors)
Khan, Owais Ur Rehman, Tiberio Daddi, and Fabio Iraldo. 2020. “The Role of Dynamic Capabilities in Circular Economy Implementation and Performance of Companies.” Corporate Social Responsibility and Environmental Management. doi:10.1002/csr.2020.
Vancouver
1.
Khan OUR, Daddi T, Iraldo F. The role of dynamic capabilities in circular economy implementation and performance of companies. Corporate Social Responsibility and Environmental Management. 2020;
IEEE
[1]
O. U. R. Khan, T. Daddi, and F. Iraldo, “The role of dynamic capabilities in circular economy implementation and performance of companies,” Corporate Social Responsibility and Environmental Management, 2020.
@article{8674744,
  abstract     = {Although most companies perceive that they might not be able to implement a circular economy (CE), some scholars perceive that companies may do so by developing dynamic capabilities (DCs). To empirically investigate the role of DCs in CE implementation, we analyzed a sample of 220 companies in Italy through partial least squares structural equation modeling (PLS‐SEM). Our PLS‐SEM analysis demonstrates that DCs and their underlying organizational activities significantly facilitate CE implementation, which consequently improves the overall performance of companies. Moreover, a circular dynamic environment (CDE) may stimulate companies towards CE implementation. This paper contributes to the literature in the following manner. First, this paper highlights how companies can identify and pursue CE opportunities. Second, this paper contributes to the debate on the role of a dynamic environment and how DCs leads to performance. Third, this paper presents the measurement scales of DCs and shows how to operationalize a hierarchical component model (HCM) in PLS‐SEM.},
  author       = {Khan, Owais Ur Rehman and Daddi, Tiberio and Iraldo, Fabio},
  issn         = {1535-3958},
  journal      = {Corporate Social Responsibility and Environmental Management},
  keywords     = {circular dynamic environment,circular economy,corporate sustainability,dynamic capabilities,organizational performance,PLS‐SEM},
  language     = {eng},
  title        = {The role of dynamic capabilities in circular economy implementation and performance of companies},
  url          = {http://dx.doi.org/10.1002/csr.2020},
  year         = {2020},
}

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