From Pressure to Progress: Driving Circular Economy in Emerging Economies through Institutional Forces, Green Integration, and Leadership Styles.

Abstract

This study investigates the key drivers of circular economy (CE) adoption in emerging economies. Drawing on survey data from 287 manufacturing firms in Ghana, the findings revealed that green supply chain integration (GSCI)—not institutional pressures alone—is critical for CE implementation. GSCI also serves as a mediating mechanism through which transformational leadership—not transactional leadership—drives successful CE adoption. Transformational leadership (not transactional) further enhances CE success. For managers, findings suggest: (1) prioritise GSCI partnerships to operationalise CE, (2) cultivate transformational leaders to align stakeholders with sustainability goals, and (3) institutional pressures should be leveraged as complementary, rather than primary, drivers. For theory, the study examines the impact of institutional pressures, GSCI and leadership styles in accelerating CE transitions in EEs.