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Entrepreneurial values and circular economy adoption: A cross-lagged SEM-based machine learning study



Objective: The objective of the article is to provide an entrepreneurial value-based perspective that can either drive or derail circular economy (CE) adoption and related strategies. The study argued that fundamental shifts toward CE adoption require a more profound value-based change.

Research Design & Methods: Existing studies have analysed several self-transcending values in advancing circular economy (CE). However, an adequate investigation is yet to occur on self-advancing values that can obstruct CE adoption and practice in an entrepreneurial context. Embedded within a norm activation model (NAM) and informed by value-belief-norm theory (VBN), the study builds on cross-lagged data (n=477) to explain the clash between dominant self-advancing entrepreneurial values and CE strategies.

Findings: The SEM-based machine-learning test results predicted that entrepreneurial hedonic and egoistic values complemented by hedonic and egoistic consumption reciprocally drive linearity rather than circularity within entrepreneurship. However, awareness of the consequences of adverse CE business models on society and the environment moderates the effect of self-enhancing values on CE strategies.

Implications & Recommendations: Policy instruments and macro-level societal intervention in creating, enhancing, and balancing self-transcendence values with self-advancing values can improve CE adoption across the entrepreneurial architecture.

Contribution & Value Added: The study is one of the first to demonstrate entrepreneurial value-oriented barriers to circularity, derailing CE diffusion to the broader entrepreneurial landscape. It suggests measures to enhance CE adoption among entrepreneurs.



circular economy, entrepreneurial values, sustainability, hedonic, egoistic, Structural equation modelling

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Author Biography

Tahseen Anwer Arshi

Director of Entrepreneurship and Innovation, American University of Ras Al KhaimahPhd (UK) MBA, (Australia), Mphil, MA, CEE

Joseph Wallis

Professor Joseph L. Wallis has served as Dean of the School of Business at the American University of Ras Al Khaimah since 2018.  During his academic career which commenced after the completion of his Ph.D. in Economics at Rhodes University in South Africa in 1984, his program of scholarly research has become increasingly cross-disciplinary and now encompasses the areas of economics, public administration, public policy, leadership, and ethics, and includes five scholarly books as well as over ninety refereed articles including those in journals such as World DevelopmentGovernancePublic AdministrationPublic Policy and AdministrationInternet  Research and Public Management Review.  


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