When stakeholder pressure drives the circular economy: Measuring the mediating role of innovation capabilities

JAKHAR, Suresh Kumar, MANGLA, Sachin Kumar, LUTHRA, Sunil and KUSI-SARPONG, Simonov (2019). When stakeholder pressure drives the circular economy: Measuring the mediating role of innovation capabilities. Management Decision, 57 (4), 904-920.

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Official URL: https://www.emerald.com/insight/content/doi/10.110...
Link to published version:: https://doi.org/10.1108/md-09-2018-0990


Purpose The purpose of this paper is to explore the impact of stakeholder pressures on firm’s circular economy (CE) initiatives. The organizational responses are quite heterogeneous even when the firms face similar pressure. The authors have tried to explain this heterogeneity by using innovative capability as mediating variables. Design/methodology/approach Empirical survey data from Indian manufacturing firms are obtained to test the proposed hypotheses. The hypotheses are grounded in resource-based view of the firm. The authors used structural equation modeling approach with maximum likelihood methods of approximation. Findings The results indicate that exploratory innovation positively influences the firms to adopt CE practices. Whereas, exploitative innovation capability inhibits the adoption of CE practices. Practical implications This study guides business managers to focus on develop exploratory innovative capabilities before the adoption of CE practices. This study also provides guidance to policy maker about the role of regulatory mechanism plays to encourage/inhibits firms for adoption of CE practices. Originality/value This is first study to analyze the idiosyncratic behavior of the firms when subjected to stakeholder pressure for CE practices adoption. Innovative capabilities (exploratory/exploitative) are able to explain the reason for diverse response to stakeholder response.

Item Type: Article
Uncontrolled Keywords: 1503 Business and Management; 1505 Marketing; 2202 History and Philosophy of Specific Fields; Business & Management; 3505 Human resources and industrial relations; 3506 Marketing; 3507 Strategy, management and organisational behaviour; 5002 History and philosophy of specific fields
Identification Number: https://doi.org/10.1108/md-09-2018-0990
Page Range: 904-920
SWORD Depositor: Symplectic Elements
Depositing User: Symplectic Elements
Date Deposited: 17 Oct 2023 14:30
Last Modified: 17 Oct 2023 14:30
URI: https://shura.shu.ac.uk/id/eprint/32491

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