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Research background: The concept of sustainable firm performance has gained significant interest within the highly competitive business arena. There has been a significant increase in the adoption and implementation of circular economy practices by industries. If a company can implement an established approach to circular economy practices, it may expedite the attainment of sustainable corporate performance. This research is conducted in the context of ready-made garment organizations that are following green criteria in their business activities. The study focuses on an emerging South Asian country, Bangladesh, as it holds a strong position in the global apparel and garment market; it is imperative to assess and ensure the environmental maintenance of this country’s garment sector. Purpose of the article: The purpose of this research is to investigate the relationship between circular economy practices and sustainable organizational performance. The study focuses on the contributory relationship of circular economy practices on three-dimensional sustainable performance, i.e. on environmental, financial, and social performance. Method: This is a quantitative survey-based study; a total of 418 managers were selected to participate. Primary data was collected through a structured questionnaire given to a sample of permanent managers of green garment organizations in Bangladesh. For data input and analysis, SPSS and PLS-SEM software were used. Findings & value added: The results of our study demonstrate a noteworthy relationship between circular economy practices and sustainable performance. This research enhances our comprehension of the efficacy of circular economy practices in addressing environmental issues. The study examines the potential ramifications of implementing circular economy practices for policymakers in the green garment sector, which is known for its significant labor-intensive activities, and ranks as the country's second-largest contributor. The outcomes provide a distinctive perspective for adding value to the environmental concerns in emerging economies. Thus, through an investigation of circular economy practices, our research provides valuable insights for the market of global garment products concerning the environment, resource maximization, energy saving, and circular production processes.
EN
Research background: Understanding how distortions in capital and labor markets affect corporate value and sustainable growth is crucial in today's economy. These distortions can disrupt resource allocation and economic sustainability. Additionally, the role of institutional quality in shaping these dynamics requires thorough exploration. Purpose of the article: We quantify the effect of capital and labor market distortions on corporate value and sustainable growth rate (SGR) and how this association is moderated by institutional quality. Methods: Stemming from the sample criteria, we calibrated a final sample of 1971 United States-listed manufacturing firms for 2012–2022. This research offers insights into market inefficiencies and institutional effects. Progressing towards objectives, we use advanced techniques like feasible generalized least squares and generalized methods of moments. These methods help us rigorously analyze complex relationships among study variables. Findings & value added: Three key findings emerge: first, capital and labor market distortions have a negative and significant influence on corporate value and sustainable growth. Our primary finding implies that increasing distortions significantly reduce sustainable growth's value and potential. Second, we find institutional quality has a positive significant effect on corporate value and sustainable growth. Third, institutional quality positively moderates the association between capital and labor market distortions, corporate value, and sustainable growth. Findings suggest that institutional quality, as a potential mechanism, improves the efficiency of resource allocation and optimizes the sustainable economic system to lessen the negative effect of factor market distortions on corporate value and SGR. Besides, we conduct robustness checks to validate our findings. Finally, we offer policymakers and stakeholders actionable insights.
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