The path analysis of entrepreneurship impacts on circular economy in emerging markets: a mediating role of digital technology

Abstract

PurposeThe purpose of this article is to explore the impact of the firm's entrepreneurship for the transformation of circular economy (CE). The role of entrepreneurship is thought to be important for the process of four Rs in the CE, and the authors have tried to study the role and impact path of entrepreneurship in CE.Design/methodology/approachEmpirical data from Chinese listed firms are collected, and a measure of digital technology is constructed by text mining method. Mediation analysis method is used to test the proposed hypothesis.FindingsThe results show that the innovation entrepreneurship has a significant positive impact upon the CE and digital technology is playing a mediating role in the impact path. However, the business entrepreneurship is negatively affecting the CE adoption. Also, the proportion of shares hold by the institution has a heterogenous influence for the innovation entrepreneurship.Practical implicationsThis study guides policy makers about the role of entrepreneurship and the mediating effect of digital technology and to encourage the adoption of CE for firms.Originality/valueThis study reveals the mediation effect of digital technology in the impact of entrepreneurship on CE in the emerging market. The heterogeneity of the proportion of shares hold by the institutions is also analyzed in the empirical study.