Strategic Sustainability Initiatives and the Circular Economy
Insights From Firm‐Level Targets, Board Dynamics, Stakeholder Pressure, and Digital Transformation
Bibliographic Data
| ID | 21259517 |
|---|---|
| Authors | Abednego Osei (0009-0008-5072-9891, Jiangsu University, corresponding author), Andrew Osei Agyemang (0000-0001-6505-9079, Jiangsu University), Joana Cobbinah (0000-0003-2548-0269, Jiangsu University) |
| Year | 2026 |
| Volume | 35 |
| Issue | 2 |
| Pages | 764-789 |
| Publication date | 2026-04-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Business Ethics, the Environment & Responsibility (JOURNAL) |
| Journal identifiers | ISSN: 2694-6416 • E-ISSN: 2694-6424 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/beer.12818 |
| OpenAlex | W4409151876 |
| Language | EN |
| Citations received | 13 |
| References cited | 44 |
This study contributes to the literature on sustainability, innovation, and corporate governance by advancing the understanding of the circular economy (CE) through an analysis of firm‐level sustainability targets, board dynamics, stakeholder pressure, and digital transformation within firms in the MENA region. Drawing on resource‐based, stakeholder, and innovation theories, we developed models linking sustainability targets and board dynamics to CE performance, with stakeholder pressure as a mediator and digital transformation as a moderator. We tested these hypotheses using data from 647 publicly listed manufacturing companies in the MENA region, spanning 2010–2022. By employing robust econometric techniques, we found strong evidence that embedding sustainability incentives in executive compensation and implementing structured sustainability initiatives significantly enhance CE performance. Additionally, effective boardroom characteristics positively influence CE adoption, while stakeholder pressure mediates the relationship between sustainability targets, board dynamics, and CE performance. Similarly, digital transformation reinforces sustainability governance, strengthening the role of board dynamics and sustainability targets in driving CE adoption. Finally, our findings highlight regional and performance‐based differences in how MENA firms implement sustainability targets and board dynamics to influence CE outcomes. The results remain consistent after multiple robustness tests, including rolling window analysis, sensitivity analysis, and endogeneity tests. The findings emphasize the need for incentive‐driven policies that integrate CE principles into corporate governance, promote sustainability‐linked executive compensation, enhance board diversity, and support digital transformation initiatives. Policymakers should also standardize CE reporting frameworks to align with global sustainability commitments, ensuring transparency, accountability, and long‐term sustainability adoption
Business · Circular economy · Corporate sustainability · Digital economy · Digital transformation · Economic system · Economics · Industrial organization · Management · Political science · Process management · Sociology · Stakeholder · Sustainability · Corporate Social Responsibility Reporting · Environmental Sustainability in Business · Sustainable Supply Chain Management
Building Climate Risk Solutions Through Business Strategy
Strategic Pathways to Decarbonization Through ESG Innovation in High‐Pollution Industries
Pathways to Sustainable Competitive Advantage
Empowering Firms to Enhance Sustainable Supply Chain Strategies for Competitive Environmental Performance
Financing SDGs and Achieving Climate Neutrality in Turbulent Emerging Markets Through Institutional Pressure and Environmental Innovation
Charting the Pathways to Cleaner and Responsible Consumption
Unmasking Sustainability Justice Performance to Achieve SDG 16 in Mena
The Impact of Board Diversity and Ownership on Environmental Innovation
Advancing Sustainable Innovation for Sustainable Development Through ESG Integration, Sustainability Governance, and Regulatory Stringency
Strategic ESG Disclosure as Sustainability Innovation
A Systems‐Based Approach to Sustainable Development
From digital technologies to platform circular economy performance
Addressing environmental footprint disclosure in SSA countries; the roles of board characteristics and technological innovation
Strategic Management
Firm resources and sustained competitive advantage
The Circular Economy – A new sustainability paradigm?
Firm Resources and Sustained Competitive Advantage
Board Diversity and Corporate Social Responsibility
Exploring stakeholder engagement network behavior
Circular economy finance
Extending the frontiers of financial development for sustainability of the Mena states
| Citations per year | 13 |
|---|---|
| Citation span | 2025 - 2026 (2) |
| Highly cited | No |