THE EFFECT OF CIRCULAR ECONOMY AND GREEN MANAGEMENT PRACTICES ON THE GROWTH PERFORMANCE OF THE FIRM THROUGH INNOVATION

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THE EFFECT OF CIRCULAR ECONOMY AND GREEN MANAGEMENT PRACTICES ON THE GROWTH PERFORMANCE OF THE FIRM THROUGH INNOVATION

Abstract: The circular economy is a model that predicts the fundamental change of linear production and consumption habits since the Industrial Revolution. It was born on the need to eliminate the belief that our natural resources are unlimited and that waste does not cause costs and problems, which the linear economy model assumes. Now people must learn to minimize their natural resources expectations and continue the economy in a closed loop. The circular economy is based on the concept of sustainable development. It aims to restructure the procurement process of the goods or services that need to be produced in the economy.On the other hand, green management aims to ensure that businesses consider the environmental benefit at all stages from the raw material procurement process to after-sales. Businesses of all sizes need to act with this awareness, making significant ecological differences. In this sense, the study aims to evaluate the effects of circular economy and green management practices on the growth performance of the firm through innovation. Within the study’s scope, 403 valid questionnaires from companies in the manufacturing sector were collected and analyzed. While the effect of innovation on the firm’s growth performance was found to be high in the analysis results, green management remained limited. The circular economy does not affect the firm’s growth performance either positively or negatively.

Keywords: Circular Economy, Green Management, Global Environmental Issues, Innovation, Growth Performance Jel CODE: F64, M10, M14, O44, Q01, Q50

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