Impact of Organisational Factors on the Circular Economy Practices and Sustainable Performance of Small and Medium-sized Enterprises in Vietnam


Internal organisational factors have been identified as barriers to adopt circular economy (CE) practices in prior research. However, empirical evidence is limited to support this claim. Additionally, their impact on sustainable business performance, especially for the emerging economies and within the small and medium sized enterprises (SMEs) have not been studied adequately. This research bridges these knowledge gaps drawing on from CE, human resource management, innovation and sustainability literature to develop and validate a theoretical model that examines the relationships between organisational factors (leadership, innovation, culture, and skills) and their impact on adopting CE practices to enhance sustainable performance of SMEs. A survey was conducted among 205 SMEs’ employees in Vietnam, and responses were analysed using employing Structural Equation Modelling. Our findings reveal that organisational leadership will facilitate developing the culture and innovation capability to adopt CE practices through a ‘hub and spoke’ strategy for enhancing sustainable performance among the SMEs in Vietnam. In this vein, we recommend creating knowledge sharing strategies, collaborative and cooperative CE working groups within and between SMEs, and information systems capabilities to build sustainable business organisations.

Publication DOI:
Divisions: College of Business and Social Sciences > Aston Business School > Operations & Information Management
College of Business and Social Sciences > Aston Business School > Aston India Foundation for Applied Research
College of Business and Social Sciences > Aston Business School
College of Business and Social Sciences > Aston Business School > Marketing & Strategy
Funding Information: Dr. Geoff Parkes is a Senior Lecturer in Marketing and Strategy at Aston Business School. His interests are in entrepreneurship and international marketing. Most recently he was also seconded for 12 months to Aston University Hong Kong. He was formerly th
Additional Information: © 2022, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
Uncontrolled Keywords: Circular economy,Culture,Innovation,Leadership,Small and medium-sized enterprises,Sustainable performance,Vietnam,Marketing
Publication ISSN: 1873-7978
Last Modified: 22 Apr 2024 07:30
Date Deposited: 17 May 2022 09:33
Full Text Link:
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
https://www.sci ... 3150?via%3Dihub (Publisher URL)
PURE Output Type: Article
Published Date: 2022-08
Published Online Date: 2022-04-22
Accepted Date: 2022-03-26
Authors: Chowdhury, Soumyadeb
Dey, Prasanta Kumar (ORCID Profile 0000-0002-9984-5374)
Rodríguez-Espíndola, Oscar (ORCID Profile 0000-0002-4889-1565)
Parkes, Geoff
Tuyet, Nguyen Thi Anh
Long, Dang Duc
Ha, Tran Phuong

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