Transformative Paths to Economic Growth Through Circular Supply Chain Enablers and Environmental Initiatives - A Structural Equation Modeling Perspective

Abstract

This paper develops a model to explore the relationships between circular supply chain enablers, environmental sustainability initiatives, and economic growth. We theoretically justified certain observed variables from previous literature for each latent factor consideration in our model. This study, which utilized data collected from 194 firms in Morocco’s textile industry, employed structural equation modeling (SEM) to test the model developed in SmartPLS. The findings suggest that companies adopting circular supply chain enablers and environmental sustainability initiatives experience real benefits in terms of economic growth within their organizations. The findings from the SEM analysis provide a solid foundation for academics and practitioners, offering valuable contextualization that highlights how the strategic integration of enablers for the circular supply chain and environmental sustainability initiatives can help companies meet their environmental responsibilities and achieve sustained economic success. This opens up opportunities for the reinvention of corporate strategies that integrate the relationships between circular economy practices, ecological sustainability, and financial performance into a business model as a key objective.