Precursors of circular economy practices

Abstract

The study examined the precursors of circular practices among waste management firms in Ghana. Its objectives were to assess the internal financial environment and the external financial environment of the firms as the precursor of its circular economy practices The study used a cross-sectional design and a quantitative research method. Data was collected from the owners/managers of integrated waste management firms in the Environmental Service Providers Association of Ghana database. On that note, 524 firms participated in the survey. The data was collected using a closed-ended questionnaire consisting of a seven-point Likert-like scale. The findings show that the factors influencing the adoption of circular economy techniques by waste management companies in Ghana include the internal environment that is firm-level financial environment, financial readiness, and investment readiness. External factors such as country level financial environment and international level financial environment were not significant precursors. It is advised that companies in the circular economy, such as waste management companies, establish the enabling conditions for moving ahead with sustainable business practices.