Knowledge Agora



Scientific Article details

Title The influence of financial and non-financial factors on the adopting intentions of businesses towards circular business models: Evidence from Vietnam
ID_Doc 8544
Authors Tran, T; Nguyen-Thi-Phuong, A
Title The influence of financial and non-financial factors on the adopting intentions of businesses towards circular business models: Evidence from Vietnam
Year 2024
Published
DOI 10.1002/csr.2878
Abstract This study investigates the factors influencing intentions to adopt circular business models (CBMs) among businesses in Vietnam, a manufacturing hub in the region. To conduct the investigation, we developed a conceptual framework based on the behavioral theory of the firm and the resource-based view, categorizing factors into two dimensions: financial and non-financial. Through empirical analysis involving a survey of 291 businesses and employing partial least squares structural equation modeling (PLS-SEM), we found that financial factors, including capital availability, expected economic benefits, and cost management competence, exert a stronger influence on the adoption of CBMs compared to non-financial factors, such as stakeholder pressure, technology competence, and innovation competence. Furthermore, while several businesses are actively engaging in activities related to CBMs, managerial commitment towards full CBM adoption remains a prospective goal rather than an immediately actionable present reality. This study contributes in both theoretical and practical terms by addressing a critical research gap and quantifying the impact of financial and non-financial factors on CBM adoption. Our findings offer valuable insights for businesses and policymakers, facilitating the promotion of circular economy and sustainable development.
Author Keywords adopting intentions; behavioral theory of firm; circular business model; PLS-SEM; resource-based view theory; Vietnam
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Social Science Citation Index (SSCI)
EID WOS:001260056300001
WoS Category Business; Environmental Studies; Management
Research Area Business & Economics; Environmental Sciences & Ecology
PDF
Similar atricles
Scroll