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Critical Individual and Organizational Drivers of Circular Economy Implementation in SMEs in Bangladesh

Author

Listed:
  • Md. Faisal-E-Alam

    (Department of Management Studies, Begum Rokeya University, Rangpur 5404, Bangladesh)

  • Mohammad Rafiul Azam Khan

    (Department of Management Studies, Begum Rokeya University, Rangpur 5404, Bangladesh)

  • Mohammad Azizur Rahman

    (Department of Management Studies, Begum Rokeya University, Rangpur 5404, Bangladesh)

  • Paulo Ferreira

    (Portalegre Polytechnic University, Praça do Município, 11, 7300-110 Portalegre, Portugal
    VALORIZA—Research Centre for Endogenous Resource Valorization, Portalegre Polytechnic University, Campus Politécnico 10, 7300-555 Portalegre, Portugal
    CEFAGE, IIFA—Center for Advanced Studies in Management and Economics, Universidade de Évora, Palácio do Vimioso, Largo Marquês de Marialva n. º 8, 7000-809 Évora, Portugal)

  • Dora Almeida

    (Portalegre Polytechnic University, Praça do Município, 11, 7300-110 Portalegre, Portugal
    VALORIZA—Research Centre for Endogenous Resource Valorization, Portalegre Polytechnic University, Campus Politécnico 10, 7300-555 Portalegre, Portugal
    CEFAGE, IIFA—Center for Advanced Studies in Management and Economics, Universidade de Évora, Palácio do Vimioso, Largo Marquês de Marialva n. º 8, 7000-809 Évora, Portugal)

  • Rui Alexandre Castanho

    (VALORIZA—Research Centre for Endogenous Resource Valorization, Portalegre Polytechnic University, Campus Politécnico 10, 7300-555 Portalegre, Portugal
    Faculty of Applied Sciences, WSB University, 41-300 Dabrowa Górnicza, Poland
    Advanced Research Centre, European University of Lefke, Northern Cyprus, Lefke, TR-10, Mersin 99101, Turkey
    College of Business and Economics, University of Johannesburg, P.O. Box 524, Auckland Park, Johannesburg 2006, South Africa)

Abstract

This study aims to examine the influence of individual and organizational factors on the implementation of circular economy (CE) practices in SMEs in Bangladesh. A non-probability sampling technique is utilized to select a sample of 280 respondents from the textile and leather industries. Data are collected through a survey assessing individual factors such as environmental consciousness and innovation propensity, as well as organizational factors including leadership commitment and training and development programs. A frequency table is used to give the respondents’ details, and skewness and kurtosis are conducted to find the data normality. Reliability and validity analyses are conducted to ensure the robustness of the measurement instruments. A correlation matrix is generated to examine the relationships between variables, followed by a multiple regression analysis to test the hypothesized relationships. The preliminary findings indicate a significant correlation between individual and organizational factors and the implementation of CE practices. The multiple regression analysis reveals that both sets of factors contribute significantly to explaining the variance in CE implementation. The results indicate that environmental consciousness, innovation propensity, leadership commitment, and training and development programs emerge as significant predictors of CE implementation within these industries. This study offers valuable insights and sheds light on the role of individual and organizational factors in shaping sustainable practices. The findings contribute to the explanatory literature on CE implementation, providing empirical evidence to inform policymaking and business strategies aimed at promoting sustainability in the SME sector and beyond.

Suggested Citation

  • Md. Faisal-E-Alam & Mohammad Rafiul Azam Khan & Mohammad Azizur Rahman & Paulo Ferreira & Dora Almeida & Rui Alexandre Castanho, 2024. "Critical Individual and Organizational Drivers of Circular Economy Implementation in SMEs in Bangladesh," Sustainability, MDPI, vol. 16(16), pages 1-15, August.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:16:p:7149-:d:1460088
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    References listed on IDEAS

    as
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