Transition to the circular economy under the pressure of the COVID-19 pandemic and stakeholders: application in international firms toward sustainable development goals

This research aims to examine the influence of stakeholders and the COVID-19 pandemic on the transition towards a circular economy of firms, as well as the consequences of this transition on sustainable development. Using the SEM-PLS model to analyze survey data from 358 international firms, the research indicated that pressure from the COVID-19 outbreak, and the involvement of stakeholders affected the shift to a circular economy. The COVID-19 epidemic has caused huge issues for the whole planet, but it is also seen as a crucial motivator for expediting the move to a circular economy. The transition to the circular economy in companies has been demonstrated to be negatively impacted by obstacles and barriers resulting from stakeholder pressure, while the transition is positively impacted by opportunities and advantages supplied by stakeholders. In addition, the study reveals that the shift to a circular economy will aid multinational firms in achieving sustainable development. A range of recommendations are made in light of the study’s results for assisting businesses undertake a transition to a circular economy.The COVID-19 epidemic and rising stakeholder pressures have increased the need to transition to a paradigm of economic development that extends the product life cycle. This study expands the existing knowledge about the stakeholder and COVID-19-driven pressures on firms throughout the globe to adopt a circular economy model and to verify that such an economic model may indeed lead to sustainable development. Based on our research, we recommend that certain stakeholders undertake measures to mitigate the primary obstacle to the adoption of a circular economy inside the organization. This includes resolving challenges such as interdepartmental communication barriers and the ambiguity around departmental duties related to circular economy initiatives inside companies. Furthermore, the emerging technologies of Industry 4.0 have the potential to enable the implementation of circular economy practises. Therefore, it is essential for managers to be aware of the need to transition to digital supply chains to effectively implement circular economy principles. Another solution is that businesses from different industries should link together and build a system to turn waste from one industry into another industry’s raw materials, or in other words, recycle thoroughly and efficiently to minimize the amount of waste released into the environment.