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Institutional pressures and circular economy performance: The role of environmental management system and organizational flexibility in oil and gas sector

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  • Nikunj Kumar Jain
  • Abinash Panda
  • Piyush Choudhary

Abstract

The pressures to make business operations sustainable have been pushing organizations to adopt circular economy (CE) principles. With depleting fossil resources, the oil and gas (O&G) sector is pushed towards recycling limited resources available with it by leveraging CE principles. However, not many studies have been taken up how institutional pressures influence CE‐targeted environmental and economic performances. Drawing on institutional theory, this study examines the moderated‐mediation role of organization flexibility on the effects of institutional pressures on CE performance through environmental management systems (EMSs). Data are collected from 280 firms in Indian O&G sector using questionnaire‐based survey method. The study reveals that organizations leverage EMS to achieve CE performance, and flexible organizations compared with rigid ones are more effective in dealing with coercive pressures by leveraging EMS. These insights may help policymakers to formulate regulatory framework judiciously that encourages firms to adopt EMS in making their operations environmentally sustainable.

Suggested Citation

  • Nikunj Kumar Jain & Abinash Panda & Piyush Choudhary, 2020. "Institutional pressures and circular economy performance: The role of environmental management system and organizational flexibility in oil and gas sector," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3509-3525, December.
    • Handle: RePEc:bla:bstrat:v:29:y:2020:i:8:p:3509-3525
    DOI: 10.1002/bse.2593
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    15. Alexandra Barón Dorado & Gerusa Giménez Leal & Rodolfo de Castro Vila, 2022. "Environmental policy and corporate sustainability: The mediating role of environmental management systems in circular economy adoption," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 830-842, July.
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    20. Luca Marrucci & Tiberio Daddi & Fabio Iraldo, 2022. "Do dynamic capabilities matter? A study on environmental performance and the circular economy in European certified organisations," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2641-2657, September.

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