Examining the Role of Global Supply Chains and Promoting Circular Economy Models

Abstract

Global supply chains are an essential part of contemporary production and distribution, but they add to such environmental problems as degradation, resource depletion, and waste. The circular economy paradigm aims to separate economic growth from environmental damage through resource efficiency and closed-loop systems. This study investigates how global supply chain integration facilitates circular economy practices and enhances sustainability performance. Through a quantitative explanatory research design, the information was collected among supply chain and sustainability managers in the different sectors, such as automotive, electronics, textile, and consumer goods. The measurement model was confirmed by confirmatory factor analysis, and the relationships were tested by structural equation modeling, including mediation effects of the different sizes and industries. The results show that GSCI plays a big role in promoting CEP (β = 0.61, p < 0.001), which has a positive influence on SP (β = 0.55, p < 0.001). The SP is also directly affected by GSCI (β = 0.28, p < 0.001), and the mediation analysis reveals that the indirect effect is mediated by CEP (0.34, p < 0.001), which is higher than the direct effect and thus, it is partially mediated. The strength of results is ensured by model fit factors and reliability. Multigroup analysis reveals greater GSCI and CEP effects in the manufacturing group and greater CEP SP effects in larger companies. The paper concludes that integrated GSCs play a key role in enhancing practices of CE and sustainability. Industry and firm-specific strategies can maximize results. The future study must be based on longitudinal research.