Jul 2026· European Management Review· 0 citations· 54 references
Abstract
This study contributes to the literature on the circular economy (CE) and small‐ and medium‐sized enterprises (SMEs) by advancing both theory and empirical evidence on the role of contextual factors. Theoretically, it refines institutional and cultural contingency perspectives by showing that national innovation systems and societal norms do not uniformly enhance the effectiveness of financial support for CE adoption. Instead, these contextual factors shape the impact of public and private financial resources in an asymmetric and selective manner. By jointly considering formal institutions, such as a country's innovation level, and informal institutions, such as social indulgence, the study offers a more nuanced framework to explain cross‐country variation in SMEs' engagement with CE practices. Empirically, the study analyses Flash Eurobarometer data from 26 European Union countries collected in 2015, 2017 and 2021. The results indicate that greater public and private financial support is associated with higher levels of CE engagement among SMEs. In addition, the findings reveal that national innovation levels positively moderate the relationship between public financial support and CE actions, whereas social indulgence negatively moderates the relationship between public support and CE development. Overall, the study provides comparative evidence highlighting the importance of tailoring financial support policies to national institutional and cultural contexts.
The circular economy has become crucial, especially for developing countries whose sustainable development process has been confronted with resource scarcity, growing environmental pressures, and rapid urbanization. This study develops a circular economy index (CEI) to evaluate circular economy (CE) performance at the firm level and investigates its determinants for small and medium-sized enterprises (SMEs) in Vietnam’s agrifood sector. The study employs a Principal Component Analysis approach for the CEI construction and an Ordinary Least Squares regression for examining significant drivers of CE performance with a focus on firms’ human capital, business strategies, infrastructure, institutional incentives, and the engagement of consumers and communities. The empirical outcomes highlight the importance of human capital development and demand-side mechanisms in advancing the CE transition in the agrifood sector. Most influentially, managerial awareness and technical competence of employees are significant predictors of higher CEI among agrifood SMEs. Consumer concerns and engagement exert a positive influence, underscoring the critical role of societal pressure in fostering CE performance in the agrifood industry. Government support and business strategy show positive effects, while firm size, location, and infrastructure variables are not statistically significant. Advancing CE practices among SMEs in Vietnam’s agrifood sector necessitates a multifaceted strategy encompassing investment in human capital development at both managerial and operational levels, the enhancement of governmental incentives and regulatory frameworks, and the incorporation of corporate social responsibility and community engagement within business strategies.
Loan T. Le· International Journal of Man...· 0 citations
Small and Medium-sized Enterprises (SMEs) are pivotal to both economic resilience and innovation across the European Union. Despite representing 99.7% of all enterprises in Romania and employing over 65% of the workforce, Romanian SMEs remain significantly underrepresented in applied research initiatives compared to their Western European counterparts. This paper explores the structural and strategic challenges that hinder research integration within Romanian SMEs, including limited access to funding, weak innovation ecosystems, and insufficient collaboration with academic and technological institutions. Drawing on official data from Eurostat,
the European Commission, and the National Institute of Statistics, the study highlights the discrepancy between Romania and the EU average in terms of research participation—particularly within Horizon Europe programs—and proposes actionable strategies to enhance technology transfer and policy alignment. Emphasis is placed on regional disparities, Smart Specialisation Strategies (RIS3), and the role of digitalisation in strengthening SME innovation capacity. The findings underline the urgent need for coherent policy instruments and targeted support to bridge the innovation divide between Romania and the rest of the EU.
Cosmin-Lucian Ion, N. Ungureanu· Optimizing the Future: Manag...· 0 citations
In emerging economies, integrating innovation, governance, and ESG criteria poses a strategic challenge, necessitating analyses that align these dimensions. This study, using data from 3483 observations of companies listed on B3 (2015-2022), examined the effects of these factors on economic-financial performance, alongside ESG’s role in mitigating CEO duality and promoting female board representation. Employing the Generalized Method of Moments (GMM), results revealed complex relationships: innovation positively impacted performance, solidifying its role as a competitive driver. CEO duality exhibited progressively negative effects, highlighting risks of power concentration. Female representation yielded ambiguous impacts, suggesting reliance on inclusion policies. ESG practices, though linked to operational costs and greenwashing in isolation, enhanced positive outcomes when combined with diversified boards, underscoring governance-sustainability synergies. Theoretically, the study integrated Stakeholder and Agency Theories, indicating ESG amplifies benefits in collaborative contexts but fails to offset governance gaps. Practically, it recommends balanced governance structures, separation of leadership roles, and gender diversity investments as strategic complements to ESG. Thus, the research underscores the relevance of multifaceted approaches for sustainable performance in emerging markets, offering insights into mitigating risks while leveraging innovation and governance synergies.
Adevair de Deus Ribeiro· International journal of res...· 0 citations
In light of the socio-environmental challenges faced by cities and the climate threats intensified by the linear economic model, it has become increasingly urgent to understand how local governments can lead the transition to more sustainable urban models, such as the Circular Economy. This research analyzes the actions and policies adopted by local governments to promote this transition in major Brazilian cities. The municipalities of Salvador (BA) and São Paulo (SP) were investigated through a multiple-case study and cross-case synthesis. The results indicate that these governments may assume roles and mobilize mechanisms consistent with institutional entrepreneurship by performing five key roles: strategic direction, normative adaptation, capacity building and collaboration networks, support for innovation and circular businesses, and circular urban management. In this research, the findings reveal a predominance of coercive institutional pressures, with a lower presence of normative and mimetic mechanisms, which limits the broader institutional diffusion of circular practices. It is concluded that promoting the CE requires an integrated and multilevel approach that articulates planning, regulation, and stakeholder engagement, as well as the strengthening of institutional capacities and collaborative networks to expand urban transformation. The study contributes by showing that the role of local governments in circular transition depends not only on the existence of governmental initiatives, but on how strategic roles, governance arrangements, and institutional pressures are combined to induce change toward circularity.
Marcone Ambrósio Trindade, Alair Ferreira de Freitas, W. Alves et al.· Circular Economy and Sustain...· 0 citations
This study examines the relationship between environmental, social, and governance (ESG) performance and firm value in the global energy sector, with a focus on the moderating effects of national culture and green innovation. It analyzes 1960 firm‐year observations from publicly traded energy companies in 35 countries from 2014 to 2023. Results show that ESG performance is positively associated with accounting‐based performance, while its impact on market valuation is limited. National culture plays a significant role: individualism enhances the financial benefits of ESG, whereas power distance and uncertainty avoidance reduce them. Green innovation improves operational performance but does not strengthen the ESG–firm value link, likely because of the short‐term costs of implementation and adjustment. The findings underscore the critical role of institutional context and organizational capabilities in driving value through sustainability initiatives in the energy sector. These results hold consistently across ESG measures, subsample analyses, and endogeneity tests.
Atar Derj, Adil Bami, Slimane Ed-dafali et al.· Corporate Social Responsibil...· 0 citations
Abstract What motivates small-and medium-sized enterprises (SMEs) to engage in environmental practices? Existing studies mainly distinguish between internal and external economic drivers of firms’ green behaviour. However, economic factors alone may provide only a partial explanation, as firms’ environmental decisions are also shaped by the broader social context in which they operate. In this paper, we examine how three key contextual actors – state, market, and community – influence SMEs’ provision of green products and services, and whether their interaction reflects the existence of a Green Social Contract between firms and society from a neo-institutionalist perspective. Using Eurobarometer survey data on SMEs combined with datasets on citizens’ eco-social attitudes and countries’ institutional and economic characteristics, the analysis shows that SMEs’ green behaviour is strongly shaped by contextual factors. Formal institutional quality has a positive and significant effect, while peer market pressure and community engagement promote firms’ green behaviour and can also partially compensate for weaker formal institutions. These findings highlight the importance of policies that encourage competition and transparency among firms and strengthen citizens’ environmental and social awareness to promote the provision of green products and services by SMEs.
Rocco Caferra, Jordi Ripollés, G. Tedeschi· Journal of Institutional Eco...· 0 citations
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