Unveiling the power of social value: Catalyzing circular economy in emerging market SMEs

Abstract

The circular economy serves as a dynamic force for sustainability, emphasizing energy conservation, enduring design, and recycling, all while prioritizing value creation. Aligned with the comprehensive triple bottom line framework, encompassing environmental, social, and financial dimensions, circular economy initiatives hold the promise of substantial organizational benefits. This research, deeply rooted in systems thinking, investigates the pivotal role of social value in achieving organizational objectives. Employing structural equation modeling, a serial mediation model is meticulously crafted based on a cross-sectional online survey conducted among small and medium-sized enterprises in Turkey. The findings bring to light mutually reinforcing relationships among triple bottom line dimensions, accentuating the positive mediating mechanisms between social value initiatives and organizational performance. This study significantly advances our understanding of social value, circular economy practices, and sustainability within the context of Turkish SMEs. The practical implications of this research provide valuable guidance for organizations navigating the realms of social and environmental responsibility. Through the implementation of diverse strategies, organizations can adeptly integrate and manage the multifaceted aspects of the triple bottom line, culminating in favorable outcomes and the cultivation of triumvirate elements that augment organizational performance.