Nexus Between Stakeholders’ Pressure, Environmental Commitment, Circular Economy, And CSR For Sustainability: Evidence from Smes

Abstract

Drawing from a sample of Chinese small-medium organizations (SMEs), this study explored the interplay between stakeholders' pressure (PSP), environmental commitment (EC), circular economy performance (CEP), and CSR for sustainability (PCS).  Quantitative data from 137 managers of manufacturing SMEs was collected using convenience sampling and cross-sectional design. PLS-SEM processed the data. The findings revealed that the PSP directly affected EC and CEP but not PCS. Further, we deployed two mediators (EC and CEP) to explore the indirect mechanisms within the research framework. The mediation analysis revealed a significant association between PSP and PCS, as well as between EC and PCS. This study explored the possibility of integrating the stakeholder theory and resource-based views, which could enable policymakers to have an insight into utilizing the nuance liaison between the stakeholder and the reflection within the manufacturing sectors for sustainable development.