Critical Individual and Organizational Drivers of Circular Economy Implementation in SMEs in Bangladesh

Abstract

This study aims to examine the influence of individual and organizational factors on the implementation of circular economy (CE) practices in SMEs in Bangladesh. A non-probability sampling technique is utilized to select a sample of 280 respondents from the textile and leather industries. Data are collected through a survey assessing individual factors such as environmental consciousness and innovation propensity, as well as organizational factors including leadership commitment and training and development programs. A frequency table is used to give the respondents’ details, and skewness and kurtosis are conducted to find the data normality. Reliability and validity analyses are conducted to ensure the robustness of the measurement instruments. A correlation matrix is generated to examine the relationships between variables, followed by a multiple regression analysis to test the hypothesized relationships. The preliminary findings indicate a significant correlation between individual and organizational factors and the implementation of CE practices. The multiple regression analysis reveals that both sets of factors contribute significantly to explaining the variance in CE implementation. The results indicate that environmental consciousness, innovation propensity, leadership commitment, and training and development programs emerge as significant predictors of CE implementation within these industries. This study offers valuable insights and sheds light on the role of individual and organizational factors in shaping sustainable practices. The findings contribute to the explanatory literature on CE implementation, providing empirical evidence to inform policymaking and business strategies aimed at promoting sustainability in the SME sector and beyond.