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Towards a Circular Economy: Cleaner Production Technology Adoption Among Small and Medium Enterprises in an Emerging Economy

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Abstract

The integration of environmental considerations into business strategies is vital for organizational sustainability. The adoption of cleaner production technologies remains a complex issue in emerging economies. The majority of the literature still focuses on developed nations. This study aims to fill this gap by providing empirical insights into CPT adoption among small and medium enterprises (SMEs) in Malaysia. Utilizing the technology-organization-environment (TOE) framework and multiple regression analysis, data from 437 SME managers reveal that factors such as relative advantage, regulatory pressure, government support, customer pressure, environmental uncertainty, human resources, top management support, compatibility, and complexity significantly influence CPT adoption. Interestingly, perceived cost was not a significant predictor. Both research and managerial implications are discussed.

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Data Availability

The data presented in this study are available on request from the corresponding author.

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Acknowledgements

The authors would like thank the Marketing Lab, Department of Marketing, College of Business Administration, Prince Sultan University for academic support to conduct the research.

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Conceptualization, S.S.A.; methodology, S.A.; software, S.A.; validation, S.S.A. and H.A.K.; formal analysis, S.A.; investigation, S.S.A. and S.A.; resources, H.A.K.; data curation, S.A. and H.A.K.; writing—original draft, S.S.A.; writing—review and editing, S.A. and H.A.K.; supervision, S.S.A. and S.A

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Correspondence to Mohammad Masukujjaman.

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Alam, S.S., Masukujjaman, M., Ahmed, S. et al. Towards a Circular Economy: Cleaner Production Technology Adoption Among Small and Medium Enterprises in an Emerging Economy. Circ.Econ.Sust. (2024). https://doi.org/10.1007/s43615-023-00341-7

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