Propelling the Transition to Circular Economy: Exploring the Role of Corporate Circular Economy Performance‐Based Incentive Policy

IF 12.5 1区管理学 Q1 BUSINESS

Business Strategy and The Environment Pub Date : 2025-04-14 DOI:10.1002/bse.4285

Emmanuel A. Morrison, Douglas A. Adu, Danson Kimani

{"title":"Propelling the Transition to Circular Economy: Exploring the Role of Corporate Circular Economy Performance‐Based Incentive Policy","authors":"Emmanuel A. Morrison, Douglas A. Adu, Danson Kimani","doi":"10.1002/bse.4285","DOIUrl":null,"url":null,"abstract":"This study examines the impact of executive compensation (EC) and corporate circular economy performance incentives (CCEPI) on corporate circular economy initiatives (CCEI) and corporate circular economy performance (CCEP) by integrating legitimacy theory and the resource‐based view. Despite increasing attention to sustainability, there is limited understanding of how governance mechanisms, such as EC and CCEPI, drive circular economy practices. Addressing this gap, we analyse 41,370 firm‐year observations from 50 countries over the period 2002–2022. The findings reveal four key insights: (1) higher EC significantly enhances CCEI, demonstrating greater corporate commitment to circular economy practices; (2) CCEPI positively influences the effectiveness of CE efforts; (3) CCEPI does not directly improve CCEP but strengthens CCEI as a long‐term strategic investment; (4) these relationships vary by country, sector and over time. The study offers crucial implications for policymakers and practitioners, emphasising the role of targeted incentives in promoting sustainable business practices and recognising the contextual factors that affect their effectiveness.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"218 1","pages":""},"PeriodicalIF":12.5000,"publicationDate":"2025-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Business Strategy and The Environment","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1002/bse.4285","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}

引用次数: 0

Abstract

This study examines the impact of executive compensation (EC) and corporate circular economy performance incentives (CCEPI) on corporate circular economy initiatives (CCEI) and corporate circular economy performance (CCEP) by integrating legitimacy theory and the resource‐based view. Despite increasing attention to sustainability, there is limited understanding of how governance mechanisms, such as EC and CCEPI, drive circular economy practices. Addressing this gap, we analyse 41,370 firm‐year observations from 50 countries over the period 2002–2022. The findings reveal four key insights: (1) higher EC significantly enhances CCEI, demonstrating greater corporate commitment to circular economy practices; (2) CCEPI positively influences the effectiveness of CE efforts; (3) CCEPI does not directly improve CCEP but strengthens CCEI as a long‐term strategic investment; (4) these relationships vary by country, sector and over time. The study offers crucial implications for policymakers and practitioners, emphasising the role of targeted incentives in promoting sustainable business practices and recognising the contextual factors that affect their effectiveness.

查看原文本刊更多论文

推动循环经济转型：企业循环经济绩效激励政策的作用探讨

本研究通过整合合法性理论和资源基础理论，考察了高管薪酬和企业循环经济绩效激励对企业循环经济举措和企业循环经济绩效的影响。尽管人们越来越关注可持续性，但对EC和CCEPI等治理机制如何推动循环经济实践的理解有限。为了解决这一差距，我们分析了2002年至2022年期间来自50个国家的41370个公司年的观察结果。研究结果揭示了四个关键见解：(1)较高的EC显著提高了CCEI，表明企业对循环经济实践的承诺更大；(2) CCEPI正向影响环境教育工作的有效性；(3) CCEPI并没有直接改善CCEP，而是作为一项长期战略投资加强了CCEI；(4)这些关系因国家、部门和时间而异。这项研究为政策制定者和实践者提供了重要的启示，强调了有针对性的激励在促进可持续商业实践中的作用，并认识到影响其有效性的背景因素。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Business Strategy and The Environment Multiple-

CiteScore

22.50

自引率

19.40%

发文量

336

期刊介绍： Business Strategy and the Environment (BSE) is a leading academic journal focused on business strategies for improving the natural environment. It publishes peer-reviewed research on various topics such as systems and standards, environmental performance, disclosure, eco-innovation, corporate environmental management tools, organizations and management, supply chains, circular economy, governance, green finance, industry sectors, and responses to climate change and other contemporary environmental issues. The journal aims to provide original contributions that enhance the understanding of sustainability in business. Its target audience includes academics, practitioners, business managers, and consultants. However, BSE does not accept papers on corporate social responsibility (CSR), as this topic is covered by its sibling journal Corporate Social Responsibility and Environmental Management. The journal is indexed in several databases and collections such as ABI/INFORM Collection, Agricultural & Environmental Science Database, BIOBASE, Emerald Management Reviews, GeoArchive, Environment Index, GEOBASE, INSPEC, Technology Collection, and Web of Science.