Circular Economy Innovation and SME Competitiveness in Emerging Economies
DOI:
https://doi.org/10.59890/ijmbi.v4i5.65Keywords:
Circular Economy, Innovation, MSME Competitiveness, Sustainable Management, Developing CountriesAbstract
Economic transformation towards sustainability increases the urgency of implementing circular economy innovations to strengthen the competitiveness of MSMEs in developing countries. This study aims to analyze the influence of circular economy innovation on the competitiveness of MSMEs and examine the role of sustainable management practices in this relationship. The study uses an explanatory quantitative approach through a survey of 150 MSME actors in the manufacturing and service sectors. Data were collected using a structured questionnaire and analyzed using the Structural Equation Modeling-Partial Least Square (SEM-PLS) method. The results of the study show that circular economy innovation has a positive effect on the competitiveness of MSMEs. In addition, sustainable management practices have a positive effect on the competitiveness of MSMEs, but have not been proven to strengthen the relationship between circular economy innovation and competitiveness.
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