Linking circular economy model and green supply chain practices to shape environmental performance: case of Vietnam

Abstract

The circular economy (SE) is the foremost element for environmental improvement that reduces wastage and enhances production. This aspect requires the focus of new researchers and experienced policymakers. Hence, the current research examines the impact of SE practices such as internal environmental management (IEM), eco-design, and internal recovery on the SE targeted performance, such as environmental performance in Vietnam. The research also investigates the moderating role of environmental-oriented supply chain (SC) practices such as green purchases among IEM, eco-design, internal recovery, and environmental performance in Vietnam. The research collected the data from the respondents using survey questionnaires. The research also investigates the association among variables using smart-PLS. The outcomes revealed that the IEM, eco-design, and internal recovery are positively associated with environmental performance. The outcomes also exposed that the green purchases significantly moderates among IEM, eco-design, internal recovery, and environmental performance. The research guides the regulators in establishing regulations related to achieve the high SE targeted performance, such as environmental performance using circular economy practices such as IEM, eco-design, and internal recovery.

Keywords: Circular economy practices; Circular economy targeted performance; Eco-design; Environmental performance; Environmental-oriented practices; Green purchases; Internal recovery.