Do Sustainable Supply Chain Performance Enhance Circular Economy: Mediation Analysis
Abstract
The circular economy (CE) method is crucial for manufacturing firms to address sustainability concerns. This study uses Stimulus-Organism-Response to analyses how circular economy (CE) practices affect manufacturing firms' sustainable supply chain performance (SSCP). Data was collected from manufacturing employees, and the hypotheses were tested utilized SPSS-26. The findings reveal that circular economy practices have positive impact on SSCP, mediated by capabilities and supply chain flexibility. This research fills a gap in literature by presenting empirical evidence of the mechanisms connecting CE practices and SSCP. The study highlights integrating CE strategies importance to improve adaptability, resource optimization, and long-term business success.
Keywords: sustainable, circular economy, flexibility, capabilities, S-O-R model