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Navigating circular economy: Unleashing the potential of political and supply chain analytics skills among top supply chain executives for environmental orientation, regenerative supply chain practices, and supply chain viability

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  • Surajit Bag
  • Muhammad Sabbir Rahman

Abstract

In a changing business environment, firms encounter significant challenges to fulfill sustainable development goals. However, firms can make substantial progress by adopting regenerative approaches grounded in circular economy principles, enabling them to effectively pursue sustainable development objectives such as responsible production and consumption (goal 12), climate action (goal 13), and the preservation of life on land (goal 15). However, there is a scarcity of research studies that offer guidance to top supply chain (SC) executives, aiming to enhance their environmental focus and enhance the SC viability through regenerative SC practices. This study employed the philosophical perspective of the natural resource‐based view. Advancing the SC literature, it tested a theoretical model to investigate the relationship between the political skills and SC analytics skills of top SC executives and the environmental orientation of SCs. Additionally, it examined the direct and indirect (via regenerative SC) relationships between a firm's environmental orientation and SC viability. This study also tested the moderating role of a firm's artificial intelligence‐driven big data analytics culture in these relationships. Applying a mixed‐methods approach, the study derived a theoretical model to link the aforementioned constructs. Apart from a qualitative investigation, data were also collected through a questionnaire‐based survey from 375 samples. The results indicated that the relationship between the political skills and SC analytics skills of top SC executives toward the environmental orientation of SCs is significant. Furthermore, they indicated that a firm's environmental orientation is positively related to a regenerative SC, which in turn enhances SC viability. The findings also provided evidence that a firm's AI‐driven big data analytics culture enhances the strength of these relationships. The current study extends the knowledge base by integrating the two unique concepts of digitalization and circular economy.

Suggested Citation

  • Surajit Bag & Muhammad Sabbir Rahman, 2024. "Navigating circular economy: Unleashing the potential of political and supply chain analytics skills among top supply chain executives for environmental orientation, regenerative supply chain practice," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 504-528, February.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:2:p:504-528
    DOI: 10.1002/bse.3507
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    References listed on IDEAS

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