The impact of the external environment on transferring from linear to circular economy with the mediating role of knowledge assimilation

Šimelytė, Agnė; Tvaronavičienė, Manuela; Peyravi, Bahman; Beretta, Edoardo

doi:10.24294/jipd.v8i2.2699

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Journal article

The impact of the external environment on transferring from linear to circular economy with the mediating role of knowledge assimilation

Šimelytė, Agnė Department of Economics Engineering, Faculty of Business Management, Vilnius Gediminas Technical University, Lithuania - General Jonas Zemaitis Military Academy of Lithuania, Vilnius, Lithuania
Tvaronavičienė, Manuela Department of Business Technologies and Entrepreneurship, Faculty of Business Management, Vilnius Gediminas Technical University, Lithuania
Peyravi, Bahman Department of Business Technologies and Entrepreneurship, Faculty of Business Management, Vilnius Gediminas Technical University, Lithuania
Beretta, Edoardo ORCID Istituto di economia politica (IdEP), Facoltà di scienze economiche, Università della Svizzera italiana, Svizzera

2024

Published in:

Journal of Infrastructure, Policy and Development. - 2024, vol. 8, no. 2

English Knowledge transfer, assimilation, transformation and exploitation significantly impact performing business activities, developing innovations and moving forward to new business models such as transferring to a circular economy. However, organizations’ decisions or willingness to transition to a circular economy are very often also influenced by the external environment. The study aims to determine the influence of the external environment on the transfer from a linear to a circular economy while mediating knowledge assimilation. The quantitative research involved 159 Nordic capital companies operating in Estonia and Lithuania. The survey has been performed by means of the CATI method. The analysis has been done also by applying structural equation modelling (SEM). In order to perform mediation analysis, IBM SPSS and a special PROCESS macro have been used. The study showed that knowledge assimilation partially mediates the relationship between the external environment and the transfer to the circular economy. Hence, the external environment’s direct effect is much more significant than the indirect. The added value of the study also consists in extending the concept of circular economy by including some aspects of absorptive capacity and the external environment.

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