Tourism's circular economy: Opportunities and challenges from an integrated theoretical perspective

• 
  By Abinash Panda
  Professor

  Co-Authors
  Nikunj Kumar Jain, Production And Operations Management Area, Indian Institute Of Management Nagpur, Nagpur, India
  Vishal Arghode, Dahlkemper School Of Business, Gannon University, Erie, PA, USA
  

  Journal : Business Strategy and the Environment
  Publisher : Wiley-Blackwell Publishing

Article citation: Jain, N. K., Panda, A., & Arghode, V. Tourism's circular economy: Opportunities and challenges from an integrated theoretical perspective. Business Strategy and the Environment.

Abstract
This study explored circular economy (CE) performance in small- and medium-sized enterprises (SMEs) in the tourism sector. The study's theoretical framework comprised value–belief–norm theory, institutional theory, upper echelon theory (UET), and the dynamic capabilities (DCs) approach. Empirical data from 286 Indian SMEs were analyzed using partial least squares structural equation modeling. The results indicated that personal norms, coercive pressures (CP), mimetic pressures (MP), and top management commitment toward the environment influenced CE performance through DCs. However, normative pressures (NP) did not significantly influence CE performance. DCs were a catalyst enabling individual beliefs, organizational factors, and external pressures to push SMEs toward a CE. Nevertheless, possibly due to insufficient resources, SMEs were reluctant in improving their CE performance. Policymakers and SME owners should therefore develop DCs in their organizations to achieve CE performance through appropriate resource assessment and design.