Circular Economy Practices in Food Supply Chains: A Catalyst for Improved Environmental Performance Through Sustainability Orientation

Abstract

The objective of this paper is to examine the impact of circular economy practices (CEP), sustainability orientation (SO), and environmental performance (EP) within food supply chain firms in Pakistan. In order to test the proposed hypotheses, the data were gathered from 229 participants. In the current research study, we used quantitative research and structural equation modelling SEM applied in the SmartPLS version. The current research results suggest that CEP positively and significantly impacts SO and EP.   In addition, it was recommended that the SO relationship between CEP and EP be established for Pakistan's in-food supply chain firms as a developing country. Thus, extending the Resource-Based View (RBV) theory, it is possible to indicate that circular economy offerings are valuable resources for obtaining competitive advantages in food supply chain firms. In that regard, the study offers managerial implications for the organization to implement circular economy strategies and foster a more sustainable culture. In conclusion, this research pays attention to the fact that organizations, businesses and industries must embrace circular economy and sustainability values to reduce their negative impact on the environment and work towards sustainable solutions in the long run.