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Effects of circular economy practices on sustainable firm performance of green garments

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Amin M. B., Asaduzzaman M., Debnath G. C., Rahaman M. A., Oláh J.
Oeconomia Copernicana
|
2024
|
vol. 15
|
issue 2
637-682
EN
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.
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