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Complementarity of circular economy practices: an empirical analysis of Chinese manufacturers

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  • Yang Yang
  • Lujie Chen
  • Fu Jia
  • Zhiduan Xu

Abstract

In recent years, circular economy (CE) is receiving increasing attention worldwide and is intended to integrate economic activity and environmental wellbeing in a sustainable way. The CE mainly focuses on both the front (eco-design, ECO) and back ends (reverse activities, RA) of operations and production at the firm level. However, what is missing in the literature are the synergistic effects between the two practices on corporate social responsibility (CSR) performance. Drawing on systems theory, this paper used panel data of Chinese manufacturing firms over the period from 2013 to 2015 that was collected from Chinese Research Data Services Platform (CNRDS) and Rankins CSR Ratings (RKS) databases and performed a series of regression tests to see whether complementarity exists between them and their effects on CSR performance. The results show significant complementarity between ECO and RA in improving CSR performance. Furthermore, building on systems theory, three kinds of enablers are identified as essential for promoting the interaction of subsystems and the complementarity of ECO and RA, including CSR vision as an internal enabler within the system, an environmental management system as a system regulation, and supply chain cooperation as an external enabler from the environment.

Suggested Citation

  • Yang Yang & Lujie Chen & Fu Jia & Zhiduan Xu, 2019. "Complementarity of circular economy practices: an empirical analysis of Chinese manufacturers," International Journal of Production Research, Taylor & Francis Journals, vol. 57(20), pages 6369-6384, October.
    • Handle: RePEc:taf:tprsxx:v:57:y:2019:i:20:p:6369-6384
    DOI: 10.1080/00207543.2019.1566664
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    Cited by:

    1. Simona Fortunati & Laura Martiniello & Donato Morea, 2020. "The Strategic Role of the Corporate Social Responsibility and Circular Economy in the Cosmetic Industry," Sustainability, MDPI, vol. 12(12), pages 1-28, June.
    2. Dolores Gallardo-Vázquez & Sabina Scarpellini & Alfonso Aranda-Usón & Carlos Fernández-Bandera, 2024. "How does the circular economy achieve social change? Assessment in terms of sustainable development goals," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-18, December.
    3. Dolores Gallardo-Vázquez, 2023. "Attributes influencing responsible tourism consumer choices: Sustainable local food and drink, health-related services, and entertainment," Oeconomia Copernicana, Institute of Economic Research, vol. 14(2), pages 645-686, June.
    4. Alice Mazzucchelli & Roberto Chierici & Manlio Del Giudice & Ilenia Bua, 2022. "Do circular economy practices affect corporate performance? Evidence from Italian large‐sized manufacturing firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 2016-2029, November.
    5. Barbara Bigliardi & Domenico Campisi & Giovanna Ferraro & Serena Filippelli & Francesco Galati & Alberto Petroni, 2020. "The Intention to Purchase Recycled Products: Towards an Integrative Theoretical Framework," Sustainability, MDPI, vol. 12(22), pages 1-20, November.
    6. Arijit Bhattacharya & Shefali Srivastava & Abhijit Majumdar, 2024. "Circular supply chains in manufacturing—Quo vadis? Accomplishments, challenges and future opportunities," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4397-4423, July.
    7. Federica Acerbi & Claudio Sassanelli & Sergio Terzi & Marco Taisch, 2021. "A Systematic Literature Review on Data and Information Required for Circular Manufacturing Strategies Adoption," Sustainability, MDPI, vol. 13(4), pages 1-26, February.
    8. Belhadi, Amine & Kamble, Sachin S. & Chiappetta Jabbour, Charbel Jose & Mani, Venkatesh & Khan, Syed Abdul Rehman & Touriki, Fatima Ezahra, 2022. "A self-assessment tool for evaluating the integration of circular economy and industry 4.0 principles in closed-loop supply chains," International Journal of Production Economics, Elsevier, vol. 245(C).
    9. Pan, Xu & Wong, Christina W.Y. & Chee Yew Wong, & Boon-itt, Sakun & Li, Chunsheng, 2024. "The influences of circular economy practices on manufacturing firm's performance: A meta-analytic structural equation modeling study," International Journal of Production Economics, Elsevier, vol. 273(C).
    10. Syed Abdul Rehman Khan & Arsalan Zahid Piprani & Zhang Yu, 2022. "Digital technology and circular economy practices: future of supply chains," Operations Management Research, Springer, vol. 15(3), pages 676-688, December.
    11. Constantin Torcătoru & Dan Săvescu & Angela Repanovici, 2022. "Literature Review by Scientometric Methods on the Impact of the Circular Economy on Sustainable Industrial Products," Sustainability, MDPI, vol. 14(9), pages 1-16, April.
    12. Maryam Hina & Chetna Chauhan & Rajat Sharma & Amandeep Dhir, 2023. "Circular economy business models as pillars of sustainability: Where are we now, and where are we heading?," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6182-6209, December.
    13. Gu, Jing & Shi, Xinyu & Wang, Peini & Xu, Xun, 2022. "Examining the impact of upstream and downstream relationship stability and concentration on firms’ financial performance," Journal of Business Research, Elsevier, vol. 141(C), pages 229-242.
    14. Zhicheng Duan & Tingting Tang, 2022. "Quantitative Simulation and Verification of the Coordination Curves between Sustainable Development and Green Innovation Efficiency: From the Perspective of Urban Agglomerations Development," Sustainability, MDPI, vol. 14(24), pages 1-22, December.
    15. Sohal, Amrik & Nand, Alka Ashwini & Goyal, Preeti & Bhattacharya, Ananya, 2022. "Developing a circular economy: An examination of SME’s role in India," Journal of Business Research, Elsevier, vol. 142(C), pages 435-447.
    16. Syed Shah Alam & Mohammad Masukujjaman & Mst. Nilufar Ahsan & Husam Ahmad Kokash, 2024. "Circular Economy Practices and Sustainable Performance of the Textile and Apparel Industry: The Roles of Corporate Environmental Ethics and Green Self-efficacy," Circular Economy and Sustainability, Springer, vol. 4(3), pages 2365-2394, September.
    17. Lopes de Sousa Jabbour, Ana Beatriz & Chiappetta Jabbour, Charbel Jose & Choi, Tsan-Ming & Latan, Hengky, 2022. "‘Better together’: Evidence on the joint adoption of circular economy and industry 4.0 technologies," International Journal of Production Economics, Elsevier, vol. 252(C).

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