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Stakeholder Pressure Engaged with Circular Economy Principles and Economic and Environmental Performance

Author

Listed:
  • Juan Cristóbal Hernández-Arzaba

    (Facultad de Ingeniería y Negocios, Guadalupe Victoria, Universidad Autónoma de Baja California, Mexicali 21720, Mexico)

  • Sarfraz Nazir

    (Department of Economics-Business and Law for the Economy, University of Milan-Bicocca, 20126 Milan, Italy)

  • Sandra Nelly Leyva-Hernández

    (Facultad de Ciencias Económicas y Empresariales, Universidad Panamericana, Ciudad de México 03920, Mexico)

  • Sanar Muhyaddin

    (Faculty of Social and Life Sciences, Wrexham Glyndwr University, Wrexham LL11 2AW, UK)

Abstract

The study aims to investigate the impacts of internal and external stakeholder pressures on the adoption of circular economy (CE) principles. The study explores the primary barriers to and causes (external or internal stakeholder pressures) of CE’s transition across Mexico and explores the effects of stakeholder pressures (internal and external) on the adoption of CE principles on economic and environmental performance. For this, data were collected from 433 respondents using a structured questionnaire. For analysis, the study used the PLS-SEM technique to examine internal and external stakeholders as barriers and motivators of economic and environmental performance through CE principles. Both the structural model and the measurement model were assessed. As well as mediation analysis, the direct and indirect effects were determined. The study found that economic (β = 0.178, p = 0.000) and environmental performance (β = 0.233, p = 0.000) is affected by most external stakeholders through the adoption of circular economy principles. Although the internal stakeholders don’t affect the environmental performance (β = 0.040, p = 0.492), with the adoption of circular economy principles mediating the relationship, internal stakeholders encourage environmental performance (β = 0.201, p = 0.000). The study motivates the public, non-governmental organisations (NGOs) and the government to adopt CE principles for the achievement of economic and environmental performance and participation in the sustainable development agenda.

Suggested Citation

  • Juan Cristóbal Hernández-Arzaba & Sarfraz Nazir & Sandra Nelly Leyva-Hernández & Sanar Muhyaddin, 2022. "Stakeholder Pressure Engaged with Circular Economy Principles and Economic and Environmental Performance," Sustainability, MDPI, vol. 14(23), pages 1-20, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:23:p:16302-:d:995393
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