Green entrepreneurship and digitalization enabling the circular economy through sustainable waste management - An exploratory study of emerging economy

Abstract

In recent years, the Circular Economy (CE) has gained attention as a strategy for achieving sustainable development through cleaner production and reducing waste and pollution. At the same time, digital technologies are recognized as crucial sustainability drivers by enabling efficiency, collaboration, and innovation. This research paper explores the factors that support Green Entrepreneurship (GE) and digitalization in the context of CE and Waste Management (WM) in Indian manufacturing “Micro, Small, and Medium Enterprises” (MSMEs). Further, the study prioritizes, establishes a contextual relationship, and clusters the GE factors that enable digitalization in the CE and WM of Indian manufacturing MSMEs. To meet research goals, the study uses a mixed-methods approach that includes a literature review, qualitative interviews with MSME managers, and theoretical support (stakeholder theory, resource-based view, dynamic capability theory, met expectation theory, and upper echelons theory) to find the enablers. Further, two-phase “Multi-Criteria Decision Making” (MCDM) tools are utilized. Initially, the quantitative “Best-Worst Method” (BWM) was used for ranking, and then “Total Interpretive Structural Modeling” (TISM) was used to establish a mutual relationship among the enablers. The strength of relationships among the enablers was established based on “dependence power” (DEP) and “driving power” (DRP). The findings through BWM analysis show that among the main category, technology-based enablers, and among sub-categories, top management and organizational coordination are the high-priority enablers/sub-enablers to optimize sustainable action. The findings also suggest that technology infrastructure for cleaner and sustainable manufacturing, knowledge of green entrepreneurs, training, the dynamic capacities of digitalization towards a CE, subsidies, and finance are driving enablers. The research contributes to understanding the enabling factors of GE and digitalization and their interdependencies for CE and sustainable development.