Circular Economy Implementation Mediates Green Logistics and Absorptive Capacity for Enhanced Business Sustainability
Implementing circular economy principles effectively bridges the gap between green logistics practices and absorptive capacity, leading to improved business sustainability in SMEs.
Journal of Industrial Engineering and Management · 2023
Key Findings
- 01Green logistics has a significant positive effect on circular economy implementation.
- 02Absorptive capacity has a significant positive effect on circular economy implementation.
- 03Circular economy implementation has a significant positive effect on business sustainability.
- 04Circular economy implementation mediates the effect of green logistics on business sustainability.
- 05Circular economy implementation mediates the effect of absorptive capacity on business sustainability.
Application
Design takeaway
Focus on designing and implementing circular economy strategies as a core component of business operations, rather than treating green logistics and absorptive capacity as standalone initiatives.
How to apply
When designing products or systems for SMEs, consider how circular economy principles can be embedded to enhance resource efficiency, waste reduction, and overall business resilience.
Project actions
- 01When researching sustainability, consider how different environmental practices interact and if there's a mediating factor that amplifies their effect.
- 02If your design project involves SMEs, investigate their current absorptive capacity and how it can be leveraged for adopting new sustainable technologies or processes.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Utilizes a robust quantitative method (SEM-PLS) to test complex relationships.
- +Focuses on a specific industry (batik SMEs) providing context-specific insights.
Limitations
The sample was limited to specific regions and types of SMEs, potentially limiting the generalizability of findings to other industries or geographical areas.
Reliability & validity
The study uses SEM-PLS, a method suitable for complex models, and a sample size of 228 SMEs, which contributes to statistical power. However, the non-probability sampling method and regional focus may affect external validity.
Think critically
To what extent can the 'simple' implementation of circular economy practices observed in this study be scaled up or made more sophisticated to yield even greater sustainability benefits?
Design Principles
"Integrate circular economy frameworks to amplify the impact of sustainability initiatives."
This research highlights that simply adopting green logistics or possessing absorptive capacity isn't enough for business sustainability. The crucial element is the active implementation of a circular economy, which acts as a catalyst, transforming these inputs into tangible sustainability outcomes for small and medium-sized enterprises.
What This Means for Your Design
This study shows that for small businesses, especially those making batik with natural dyes, using eco-friendly shipping (green logistics) and being good at learning new things (absorptive capacity) only helps their long-term success if they actually use 'circular economy' ideas. These ideas, like reusing materials or designing for disassembly, are the key to making the green shipping and learning pay off for the business's future.
How to use in your project
- 1.Reference this study when discussing the importance of integrating circular economy principles as a mediator for other sustainability efforts in your design project's background research or justification.
Add to My Project
Quick Cite
(2023). Green logistic and absorptive capacity on business sustainability: The mediating role of circular economy implementation. Journal of Industrial Engineering and Management. https://doi.org/10.3926/jiem.5283 Retrieved from https://designdex.org/study/f65b3c68-322e-429c-a18c-5aaf3a6bcc59/circular-economy-implementation-mediates-green-logistics-and-absorptive-capacity-for-enhanced-business-sustainability
Paragraph starter
Research by Muafi and Sugarindra (2023) indicates that the successful implementation of circular economy principles acts as a significant mediator, enhancing the positive relationship between green logistics and absorptive capacity on overall business sustainability, particularly within SME contexts.
Source
Journal of Industrial Engineering and Management
Green logistic and absorptive capacity on business sustainability: The mediating role of circular economy implementation
journal · 2023
View sourceQuestions about this research
- What does the research say about circular economy implementation mediates green logistics and absorptive capacity for enhanced business sustainability?
- Focus on designing and implementing circular economy strategies as a core component of business operations, rather than treating green logistics and absorptive capacity as standalone initiatives. Evidence: Journal of Industrial Engineering and Management (2023).
- Why does "Circular Economy Implementation Mediates Green Logistics and Absorptive Capacity for Enhanced Business Sustainability" matter for design?
- This research highlights that simply adopting green logistics or possessing absorptive capacity isn't enough for business sustainability. The crucial element is the active implementation of a circular economy, which acts as a catalyst, transforming these inputs into tangible sustainability outcomes for small and medium-sized enterprises.
- How can designers apply this research?
- Focus on designing and implementing circular economy strategies as a core component of business operations, rather than treating green logistics and absorptive capacity as standalone initiatives.
- What were the main findings?
- Green logistics has a significant positive effect on circular economy implementation.. Absorptive capacity has a significant positive effect on circular economy implementation.. Circular economy implementation has a significant positive effect on business sustainability.. Circular economy implementation mediates the effect of green logistics on business sustainability.
- What research method was used?
- Quantitative research using Structural Equation Modeling (SEM) with Partial Least Squares (PLS). with 228 SMEs.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2023 journal from Journal of Industrial Engineering and Management.
- What should I do differently in my next project?
- When designing products or systems for SMEs, consider how circular economy principles can be embedded to enhance resource efficiency, waste reduction, and overall business resilience.
- What are the limitations?
- The study's findings may not be generalizable to all Indonesian SMEs due to the specific sample from certain regions and associations. The circular economy implementation observed was basic, suggesting room for more advanced strategies. Future research could explore longitudinal studies and multiple respondent perspectives.
- Is there evidence that circular economy affects design outcomes?
- The study found that both green logistics and a company's ability to absorb new knowledge (absorptive capacity) positively influence the adoption of circular economy practices. Crucially, the implementation of these circular economy practices then significantly boosts overall business sustainability, acting as a vital Source: Journal of Industrial Engineering and Management (2023).
- Where does this absorptive capacity research apply?
- Small and Medium-sized Enterprises (SMEs) in the natural-colored batik industry. It sits within sustainability research on designdex.org.
Related research topics
circular economy design research · evidence on circular economy · does circular economy improve design outcomes · absorptive capacity studies for designers · circular economy and absorptive capacity findings · sustainability research evidence