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

• Published in: Entrepreneurial Business and Economics Review Vol. 12; no. 2; pp. 157 - 176
• Main Authors: Arshi, Tahseen Anwer, Wallis, Joseph
• Format: Journal Article
• Language: English
• Published: Krakow Uniwersytet Ekonomiczny w Krakowie 01-01-2024; Cracow University of Economics
• Subjects: Business models; Circular economy; Consumption; Entrepreneurs; Entrepreneurship; ICT Information and Communications Technologies; Machine learning; Norms; Principles; Social responsibility; Strategic management; Structural equation modeling; Sustainability; Sustainable development; Values; entrepreneurial values; Structural equation modelling; sustainability; hedonic; circular economy; egoistic
• ISSN: 2353-883X; 2353-8821; 2353-8821
• DOI: 10.15678/EBER.2024.120210

Objective: The objective of the article is to provide an entrepreneurial value-based perspective that can eitherdrive 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 cir-cular economy (CE). However, an adequate investigation is yet to occur on self-advancing values that can ob-struct 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 ex-plain 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, en-hancing, 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 bar-riers to circularity, derailing CE diffusion to the broader entrepreneurial landscape. It suggests measures to enhance CE adoption among entrepreneurs.