Green technology adoption paving the way toward sustainable performance in circular economy: a case of Pakistani small and medium enterprises

Purpose - A rapid increase in traditional industries is creating social and environmental problems through extensive usage of natural resources and polluting the environment. A circular economy provides curative and renewing lines of action about these problems. Therefore, this study aims to examine the factors that lead toward sustainable performance in a circular economy context and empirically test the relationships between green technology adoption (GTA), circular economy principles (CEP), sustainable supply chain practices (SSCM) and sustainable performance (SP).Design/methodology/approach - Using the well-developed governmental databases, data from 435 small and medium enterprises (SMEs) in the textile sector of Pakistan were collected and tested through AMOS using a structural equation model.Findings - The results disclosed that GTA, CEP and SSCM have significant and positive direct relationships and facilitate improving SMEs' SP. Circular economy entrepreneurship (CEE) and customer pressure (CP) were found to have a significant and positive influence on the relationships of GTA and CEP with SSCM.Originality/value - The role of GTA in circular economy and the moderating effect of CEE and CP is an addition to the literature. SMEs' GTA allows them to reuse, reduce and recycle natural resources rather than obtain new ones from the ecosystem.

Automated summary

The rapid growth of traditional industries has led to social and environmental problems due to excessive use of natural resources and pollution. A circular economy offers solutions to these problems. This study examines the factors that contribute to sustainable performance in a circular economy and tests the relationships between green technology adoption, circular economy principles, sustainable supply chain practices, and sustainable performance.