Institutional pressures, sustainable supply chain management, and circular economy capability: Empirical evidence from Chinese eco-industrial park firms

Abstract

An eco-industrial park is the practical application of sustainable supply chain management at an industrial park level. As the external sustainability of the supply chain becomes more difficult, integrating the circular economy concept into supply chain management is required to achieve an optimal balance of economic, social, and environmental benefits for a company. Based on institutional theory, we construct a concept model according to the paradigm of “institution-conduct-performance.” We then test the mechanism and relationships among institutional pressure, supply chain relationship management, sustainable supply chain design, and circular economy capability using data collected from eco-industrial park firms in China via 363 questionnaires. The findings show that institutional pressure has a significant positive impact on supply chain relationship management and sustainable supply chain design; sustainable supply chain management practice is an important factor promoting the improvement of the circular economy capability of companies, and coercive pressure, normative pressure, and mimetic pressure exert different degrees of negative moderating effects. This study expands our knowledge of variables affecting sustainable supply chain management and also provides theoretical guidance for successful green production practices of eco-industrial park firms.