The impact of economic and non-economic determinants on circular economy in Vietnam: A perspective of sustainable supply chain management
Abstract
The projections of UN indicate that by the year 2030, natural resource demand will become threefold as of today. This for sure surpasses existing capacity due to which many countries are facing depletion issue or might face depletion issue in coming years. Realizing this challenge, economies all over the globe are shifting towards circular economy development in order to address the environmental sustainability issue. In Vietnam, economic activities are normally based on the principle of linear economy. However, this traditional approach not only creates shortage of natural resources but also becomes the reason of environmental destruction. Thus, the study is an attempt to find out the harmonious relationship of economic and non-economic determinants with circular economy in the presence of sustainable supply chain management as a moderator. By employing structural equation modelling, findings indicate that circular economy is the right direction as it ensures job security and bring quality education and political stability. Results also confirm that sustainable supply chain management increases the strength of positive relationship of said variables. In the light of the evidences, the paper proposes few suggestions and implications to promote the development of circular economy so that economic growth and environmental quality can be achieved at the same time.
Keyword : economic and non-economic determinants, job security, quality education, political stability, circular economy, sustainable supply chain management
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Allen, S. D., Zhu, Q., & Sarkis, J. (2021). Expanding conceptual boundaries of the sustainable supply chain management and circular economy nexus. Cleaner Logistics and Supply Chain, 2, Article 100011. https://doi.org/10.1016/j.clscn.2021.100011
Ashraf, M. A. (2019). Influences of working condition and faculty retention on quality education in private universities in Bangladesh: An analysis using SEM. International Journal of Educational Management, 33(1), 149–165. https://doi.org/10.1108/IJEM-03-2018-0121
Atkočiūnienė, Z. O., & Siudikienė, D. (2021). Communication management in promoting knowledge and creativity in fostering innovations in the creative organizations. Creativity Studies, 14(2), 549–576. https://doi.org/10.3846/cs.2021.15550
Bai, C., Sarkis, J., Yin, F., & Dou, Y. (2020). Sustainable supply chain flexibility and its relationship to circular economy-target performance. International Journal of Production Research, 58(19), 5893–5910. https://doi.org/10.1080/00207543.2019.1661532
Boon, E. K., & Anuga, S. W. (2020). Circular economy and its relevance for improving food and nutrition security in Sub-Saharan Africa: The case of Ghana. Materials Circular Economy, 2(1), 1–14. https://doi.org/10.1007/s42824-020-00005-z
Bugallo-Rodríguez, A., & Vega-Marcote, P. (2020). Circular economy, sustainability and teacher training in a higher education institution. International Journal of Sustainability in Higher Education, 21(7), 1351–1366. https://doi.org/10.1108/IJSHE-02-2020-0049
Bui, T.-D., Tsai, F. M., Tseng, M.-L., Wu, K.-J., & Chiu, A. S. (2020). Effective municipal solid waste management capability under uncertainty in Vietnam: Utilizing economic efficiency and technology to foster social mobilization and environmental integrity. Journal of Cleaner Production, 259, Article 120981. https://doi.org/10.1016/j.jclepro.2020.120981
Cera, G., Khan, K. A., Blahova, A., & Belas, Jr. J. (2022). Do owner-manager demographics in SMEs matter for corporate social responsibility? Equilibrium. Quarterly Journal of Economics and Economic Policy, 17(2), 511–531. https://doi.org/10.24136/eq.2022.018
Chowdhury, S., Dey, P. K., Rodríguez-Espíndola, O., Parkes, G., Tuyet, N. T. A., Long, D. D., & Ha, T. P. (2022). Impact of organisational factors on the circular economy practices and sustainable performance of small and medium-sized enterprises in Vietnam. Journal of Business Research, 147, 362–378. https://doi.org/10.1016/j.jbusres.2022.03.077
Dat, N. M., Dai, N. Q., & Ngoc, P. B. (2022). The impact of corporate social responsibilities (CSR), entrepreneurship, and financial factors on the financial performance of the banks in ASEAN countries. Contemporary Economics, 16(2), 227–240. https://doi.org/10.5709/ce.1897-9254.479
Daú, G., Scavarda, A., Scavarda, L. F., & Portugal, V. J. T. (2019). The healthcare sustainable supply chain 4.0: The circular economy transition conceptual framework with the corporate social responsibility mirror. Sustainability, 11(12), Article 3259. https://doi.org/10.3390/su11123259
Del Giudice, M., Chierici, R., Mazzucchelli, A., & Fiano, F. (2020). Supply chain management in the era of circular economy: the moderating effect of big data. The International Journal of Logistics Management, 32(2), 337–356. https://doi.org/10.1108/IJLM-03-2020-0119
Del Vecchio, P., Secundo, G., Mele, G., & Passiante, G. (2021). Sustainable entrepreneurship education for circular economy: Emerging perspectives in Europe. International Journal of Entrepreneurial Behavior & Research, 27(8), 2096–2124. https://doi.org/10.1108/IJEBR-03-2021-0210
Dev, N. K., Shankar, R., & Qaiser, F. H. (2020). Industry 4.0 and circular economy: Operational excellence for sustainable reverse supply chain performance. Resources, Conservation and Recycling, 153, Article 104583. https://doi.org/10.1016/j.resconrec.2019.104583
Edwin Cheng, T., Kamble, S. S., Belhadi, A., Ndubisi, N. O., Lai, K.-h., & Kharat, M. G. (2022). Linkages between big data analytics, circular economy, sustainable supply chain flexibility, and sustainable performance in manufacturing firms. International Journal of Production Research, 60(22), 6908–6922. https://doi.org/10.1080/00207543.2021.1906971
Eid, R., El-Kassrawy, Y. A., & Agag, G. (2019). Integrating destination attributes, political (in) stability, destination image, tourist satisfaction, and intention to recommend: A study of UAE. Journal of Hospitality & Tourism Research, 43(6), 839–866. https://doi.org/10.1177/1096348019837750
El Wali, M., Golroudbary, S. R., & Kraslawski, A. (2021). Circular economy for phosphorus supply chain and its impact on social sustainable development goals. Science of the Total Environment, 777, Article 146060. https://doi.org/10.1016/j.scitotenv.2021.146060
Fiksel, J., Sanjay, P., & Raman, K. (2021). Steps toward a resilient circular economy in India. Clean Technologies and Environmental Policy, 23(1), 203–218. https://doi.org/10.1007/s10098-020-01982-0
Frei, R., Jack, L., & Krzyzaniak, S. A. (2020). Sustainable reverse supply chains and circular economy in multichannel retail returns. Business Strategy and the Environment, 29(5), 1925–1940. https://doi.org/10.1002/bse.2479
Grafström, J., & Aasma, S. (2021). Breaking circular economy barriers. Journal of Cleaner Production, 292, Article 126002. https://doi.org/10.1016/j.jclepro.2021.126002
Green, K. W., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management practices: Impact on performance. Supply Chain Management: an International Journal, 17(3), 290–305. https://doi.org/10.1108/13598541211227126
Hartley, K., van Santen, R., & Kirchherr, J. (2020). Policies for transitioning towards a circular economy: Expectations from the European Union (EU). Resources, Conservation and Recycling, 155, 1046–1058. https://doi.org/10.1016/j.resconrec.2019.104634
Hussain, H. I., Kamarudin, F., Anwar, N. A. M., Sufian, F., Ali, A., & Saudi, M. H. (2022). Social globalisation and efficiency of microfinance institutions nexus: Empirical evidence on financial and social efficiency. Engineering Economics, 33(1), 27–46. https://doi.org/10.5755/j01.ee.33.1.29130
Hussain, M., & Malik, M. (2020). Organizational enablers for circular economy in the context of sustainable supply chain management. Journal of Cleaner Production, 256, Article 120375. https://doi.org/10.1016/j.jclepro.2020.120375
Iacovidou, E., Hahladakis, J. N., & Purnell, P. (2021). A systems thinking approach to understanding the challenges of achieving the circular economy. Environmental Science and Pollution Research, 28(19), 24785–24806. https://doi.org/10.1007/s11356-020-11725-9
Kębłowski, W., Lambert, D., & Bassens, D. (2020). Circular economy and the city: An urban political economy agenda. Culture and Organization, 26(2), 142–158. https://doi.org/10.1080/14759551.2020.1718148
Kirchherr, J., & Piscicelli, L. (2019). Towards an education for the circular economy (ECE): Five teaching principles and a case study. Resources, Conservation and Recycling, 150, Article 104406. https://doi.org/10.1016/j.resconrec.2019.104406
Kopnina, H. (2019). Green-washing or best case practices? Using circular economy and Cradle to Cradle case studies in business education. Journal of Cleaner Production, 219, 613–621. https://doi.org/10.1016/j.jclepro.2019.02.005
Kraimer, M. L., Wayne, S. J., Liden, R. C., & Sparrowe, R. T. (2005). The role of job security in understanding the relationship between employees’ perceptions of temporary workers and employees’ performance. Journal of Applied Psychology, 90(2), 389–398. https://doi.org/10.1037/0021-9010.90.2.389
Kristensen, H. S., & Mosgaard, M. A. (2020). A review of micro level indicators for a circular economy – moving away from the three dimensions of sustainability? Journal of Cleaner Production, 243, Article 118531. https://doi.org/10.1016/j.jclepro.2019.118531
Kryshtanovych, M., Filippova, V., Huba, M., Kartashova, O., & Molnar, O. (2020). Evaluation of the implementation of the circular economy in EU countries in the context of sustainable development. Verslas: Teorija ir praktika/Business: Theory and Practice, 21(2), 704–712. https://doi.org/10.3846/btp.2020.12482
Kumar, P., Singh, R. K., & Kumar, V. (2021). Managing supply chains for sustainable operations in the era of industry 4.0 and circular economy: Analysis of barriers. Resources, Conservation and Recycling, 164, Article 105215. https://doi.org/10.1016/j.resconrec.2020.105215
Mahroof, K., Omar, A., Rana, N. P., Sivarajah, U., & Weerakkody, V. (2021). Drone as a Service (DaaS) in promoting cleaner agricultural production and Circular Economy for ethical Sustainable Supply Chain development. Journal of Cleaner Production, 287, Article 125522. https://doi.org/10.1016/j.jclepro.2020.125522
Manavalan, E., & Jayakrishna, K. (2019). An analysis on sustainable supply chain for circular economy. Procedia Manufacturing, 33, 477–484. https://doi.org/10.1016/j.promfg.2019.04.059
Marin-Garcia, A., Gil-Saura, I., & Ruiz-Molina, M. E. (2022). Do innovation and sustainability influence customer satisfaction in retail? A question of gender. Economic Research-Ekonomska Istraživanja, 35(1), 546–563. https://doi.org/10.1080/1331677X.2021.1924217
Matuszewska-Pierzynka, A. (2021). Relationship between corporate sustainability performance and corporate financial performance: Evidence from US companies. Equilibrium. Quarterly Journal of Economics and Economic Policy, 16(4), 885–906. https://doi.org/10.24136/eq.2021.033
Meherishi, L., Narayana, S. A., & Ranjani, K. (2019). Sustainable packaging for supply chain management in the circular economy: A review. Journal of Cleaner Production, 237, Article 117582. https://doi.org/10.1016/j.jclepro.2019.07.057
Mendoza, J. M. F., Gallego-Schmid, A., & Azapagic, A. (2019). Building a business case for implementation of a circular economy in higher education institutions. Journal of Cleaner Production, 220, 553–567. https://doi.org/10.1016/j.jclepro.2019.02.045
Mies, A., & Gold, S. (2021). Mapping the social dimension of the circular economy. Journal of Cleaner Production, 321, Article 128960. https://doi.org/10.1016/j.jclepro.2021.128960
Mishra, S., Singh, S. P., Johansen, J., Cheng, Y., & Farooq, S. (2019). Evaluating indicators for international manufacturing network under circular economy. Management Decision, 57(4), 811–839. https://doi.org/10.1108/MD-05-2018-0565
Morseletto, P. (2020). Targets for a circular economy. Resources, Conservation and Recycling, 153, Article 104553. https://doi.org/10.1016/j.resconrec.2019.104553
Nam, N. H., & Hanh, N. T. (2019). Implementing Circular Economy: International experience and policy implications for Vietnam. VNU Journal of Science: Economics and Business, 35(4), 68–81. https://doi.org/10.25073/2588-1108/vnueab.4277
Nandi, S., Sarkis, J., Hervani, A. A., & Helms, M. M. (2021). Redesigning supply chains using blockchain-enabled circular economy and COVID-19 experiences. Sustainable Production and Consumption, 27, 10–22. https://doi.org/10.1016/j.spc.2020.10.019
Niaz, M. U. (2022). Socio-Economic development and sustainable development goals: A roadmap from vulnerability to sustainability through financial inclusion. Economic Research-Ekonomska Istraživanja, 35(1), 3243–3275. https://doi.org/10.1080/1331677X.2021.1989319
Nuñez-Cacho, P., Górecki, J., Molina-Moreno, V., & Corpas-Iglesias, F. A. (2018). What gets measured, gets done: Development of a circular economy measurement scale for building industry. Sustainability, 10(7), Article 2340. https://doi.org/10.3390/su10072340
Padilla-Rivera, A., do Carmo, B. B. T., Arcese, G., & Merveille, N. (2021). Social circular economy indicators: Selection through fuzzy delphi method. Sustainable Production and Consumption, 26, 101–110. https://doi.org/10.1016/j.spc.2020.09.015
Paraschiv, D. M., Manea, D. I., Țițan, E., & Mihai, M. (2021). Development of an aggregated social inclusion indicator. Disparities in the European Union on inclusion/exclusion social determined with social inclusion index. Technological and Economic Development of Economy, 27(6), 1301–1324. https://doi.org/10.3846/tede.2021.15103
Poponi, S., Arcese, G., Pacchera, F., & Martucci, O. (2022). Evaluating the transition to the circular economy in the agri-food sector: Selection of indicators. Resources, Conservation and Recycling, 176, Article 105916. https://doi.org/10.1016/j.resconrec.2021.105916
Ringle, C., Da Silva, D., & Bido, D. (2015). Structural equation modeling with the SmartPLS. Brazilian Journal of Marketing, 13(2), 29–36.
Rokicki, T., Perkowska, A., Klepacki, B., Szczepaniuk, H., Szczepaniuk, E. K., Bereziński, S., & Ziółkowska, P. (2020). The importance of higher education in the EU countries in achieving the objectives of the circular economy in the energy sector. Energies, 13(17), Article 4407. https://doi.org/10.3390/en13174407
Saha, K., Dey, P. K., & Papagiannaki, E. (2021). Implementing circular economy in the textile and clothing industry. Business Strategy and the Environment, 30(4), 1497–1530. https://doi.org/10.1002/bse.2670
Savini, F. (2021). The circular economy of waste: Recovery, incineration and urban reuse. Journal of Environmental Planning and Management, 64(12), 2114–2132. https://doi.org/10.1080/09640568.2020.1857226
Sehnem, S., Jabbour, C. J. C., Pereira, S. C. F., & de Sousa Jabbour, A. B. L. (2019). Improving sustainable supply chains performance through operational excellence: Circular economy approach. Resources, Conservation and Recycling, 149, 236–248. https://doi.org/10.1016/j.resconrec.2019.05.021
Shafi, M., Szopik-Depczyńska, K., Cheba, K., Ciliberto, C., Depczyński, R., & Ioppolo, G. (2022). Innovation in traditional handicraft companies towards sustainable development. A systematic literature review. Technological and Economic Development of Economy, 28(6), 1589–1621. https://doi.org/10.3846/tede.2022.17085
Shahzad, M., Qu, Y., Rehman, S. U., & Zafar, A. U. (2022). Adoption of green innovation technology to accelerate sustainable development among manufacturing industry. Journal of Innovation & Knowledge, 7(4), Article 100231. https://doi.org/10.1016/j.jik.2022.100231
Smol, M., Marcinek, P., Duda, J., & Szołdrowska, D. (2020). Importance of sustainable mineral resource management in implementing the circular economy (CE) model and the european green deal strategy. Resources, 9(5), Article 55. https://doi.org/10.3390/resources9050055
Streimikiene, D., & Akberdina, V. (2021). Public views of the economy of the renewable energy sources: Evidence from Russia. Contemporary Economics, 15(3), 256–267. https://doi.org/10.5709/ce.1897-9254.447
Tiberius, V., Schwarzer, H., & Roig-Dobón, S. (2021). Radical innovations: Between established knowledge and future research opportunities. Journal of Innovation & Knowledge, 6(3), 145–153. https://doi.org/10.1016/j.jik.2020.09.001
Tri, N. M. (2021). Circular economic development ensures sustainable development in Vietnam: Opportunities and challenges. International Journal of Aquatic Science, 12(3), 2419–2430.
Velenturf, A. P., & Purnell, P. (2021). Principles for a sustainable circular economy. Sustainable Production and Consumption, 27, 1437–1457. https://doi.org/10.1016/j.spc.2021.02.018
Völker, T., Kovacic, Z., & Strand, R. (2020). Indicator development as a site of collective imagination? The case of European Commission policies on the circular economy. Culture and Organization, 26(2), 103–120. https://doi.org/10.1080/14759551.2019.1699092
Yadav, G., Luthra, S., Jakhar, S. K., Mangla, S. K., & Rai, D. P. (2020). A framework to overcome sustainable supply chain challenges through solution measures of industry 4.0 and circular economy: An automotive case. Journal of Cleaner Production, 254, Article 120112. https://doi.org/10.1016/j.jclepro.2020.120112
Yazdani, M., Gonzalez, E. D., & Chatterjee, P. (2019). A multi-criteria decision-making framework for agriculture supply chain risk management under a circular economy context. Management Decision, 59(8), 1801–1826. https://doi.org/10.1108/MD-10-2018-1088
Yodchai, N., Ly, P. T. M., & Tran, L. T. T. (2022). Co-creating creative self-efficacy to build creative performance and innovation capability for business success: A meta-analysis. Creativity Studies, 15(1), 74–88. https://doi.org/10.3846/cs.2022.13852
Yousaf, Z., Radulescu, M., Nassani, A., Aldakhil, A. M., & Jianu, E. (2021). Environmental management system towards environmental performance of hotel industry: Does corporate social responsibility authenticity really matter? Engineering Economics, 32(5), 484–498. https://doi.org/10.5755/j01.ee.32.5.28619