Exploring the Relationship Between Circular Economy Entrepreneurship and Sustainable Entrepreneurial Intention: The Theory of Planned Behaviour Approach

Abstract

Sustainable entrepreneurship aligned with the circular economy has recently attracted increasing attention from scholars and policymakers due to its potential contribution to long-term environmental and socio-economic development. However, empirical research examining the mechanisms through which circular economy entrepreneurship influences sustainable entrepreneurial intention remains limited, particularly in emerging economies. This study investigates the relationship between circular economy entrepreneurship (CEE) and sustainable entrepreneurial intention (SEI) by employing a mediating framework grounded in the Theory of Planned Behaviour (TPB). Specifically, the study examines the mediating roles of attitudes toward sustainable entrepreneurship (ATSE) and perceived behavioral control (PBC), while also considering the influence of subjective norms (SN). Data were collected from 701 university students from major higher education institutions in Hanoi, Vietnam and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that CEE positively influences SEI both directly (β = 0.227, t = 6.310, p < 0.001) and indirectly through ATSE (β = 0.104, t = 3.870, p < 0.001) and PBC (β = 0.191, t = 8.063, p < 0.001). In addition, subjective norms (SN) significantly affect both CEE (β = 0.542, t = 18.909, p < 0.001) and SEI (β = 0.142, t = 4.697, p < 0.001), highlighting the importance of social influence in shaping entrepreneurial orientation toward sustainability. The study contributes to the TPB literature by extending its application to the circular economy and sustainable entrepreneurship context. Furthermore, it offers important empirical evidence and practical implications for educators, policymakers and universities seeking to promote sustainable entrepreneurial ecosystems in Vietnam and other emerging economies.