Exploring the Mechanisms Underlying Firms’ Intent to Adopt Circular Business Models
Exploring the Mechanisms Underlying Firms’ Intent to Adopt Circular Business Models

Summary/Abstract: Firms play a vital role in the transition towards a circular economy (CE). However, the number of firms imple-menting CE initiatives, or circular business models (CBMs—economic models based on CE principles), is cur-rently small. In light of this, this study quantitatively assesses the critical factors that influence firms' intentionsto adopt CBMs, with the theories of Planned Behavior and the Resource-based View providing the theoreticalbackground. We applied the PLS-SEM to 321 firms and found that attitude and perceived behavioral controlof firm owners/managers, as well as long-term orientation and social pressure of firms, significantly influencethe intention to adopt CBMs, with perceived behavioral control emerging as the most influential factor. Thefindings also confirm that finance and knowledge have a crucial influence on firm owners'/managers' percep-tions of the conditions necessary to undertake CBMs. Overall, then, the study provides sound policy implica-tions and scholarly evidence to fill the relevant research gap, and in so doing contributes to ensuring a bettertransition towards a CE.

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