Enhancing Sustainable Development in Northeastern Brazilian Organizations through Product Innovation, Environmental Strategy, and Circular Economy

Abstract

The objective of this study is to examine the impact of product innovation, environmental strategy, and circular economy on sustainable development in organizations in Northeastern Brazil. The study used a quantitative and descriptive research method, employing a survey with the snowball sampling technique applied to 557 companies in the region. Three research hypotheses were formulated and analyzed using statistical tests, confirmatory factor analysis, and multiple linear regression. The results showed that the relationships between product innovation, environmental strategy, and circular economy had a moderate intensity of influence on sustainable development with an explanation index greater than 37% (R2). The study concludes that Model 3, representing the relationship between circular economy and sustainable development, had the greatest influence on sustainable development with a moderate intensity of 46.20%. As natural resources are finite and the world population continues to grow exponentially, organizations must reduce their impact on the environment and consumption of natural resources. Environmental strategy and circular economy can effectively contribute to sustainable development, which is crucial for meeting the increasing demands for new products, food, housing, health, education, employment, and income.