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Digital knowledge systems and circular innovation capability: Evidence from electronics manufacturing sector
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DOI：10.1016/j.jik.2026.101093.png)
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Abstract
En 中文
Environmental issues in China are escalating due to its rapid growing electronics manufacturing industry. These issues include electronic waste, depletion of resources, and carbon emission. Effective circular economy (CE) operationalization is required to achieve national sustainability as proposed in the Made in China 2025 project and 2060 carbon neutrality commitment. . However, many companies struggle to implement CE activities due to limited innovation potential and knowledge fragmentation. Drawing on the Resource-Based View (RBV) and the Knowledge-Based View (KBV), this study examines how digital knowledge management systems (DKMS), open innovation practices (OIP), and green investment strategies (GIS) on circular innovation capability (CIC) that subsequently facilitates CE implementation (CEI). It also investigates the moderating effect of the stakeholder pressure (SP) on the CIC-CEI relationship. Using a quantitative cross-sectional research, data was collected from 327 employees in Chinese electronics manufacturing companies. It was analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) in Smart-PLS. The findings show that DKMS, OIP, and GIS significantly enhance CIC, which in turn strongly predicts CEI. Also, the SP positively moderates the CIC-CEI relation, which demonstrates that the impact of the innovation capability is enhanced under high institutional and market pressure. These results highlight that digitalisation, joint innovation, and sustainability-driven financial policies are crucial for a successful CE transition. The findings contribute to the theoretical knowledge of capability formation in circular transformation and offers actionable implications for the stakeholders aiming to develop a resource-efficient, innovation-driven, and environmentally friendly electronics industry in China.
Keywords:
Circular innovation capability
Circular economy implementation
Digital knowledge management systems
Open innovation practices
Green investment strategies
Stakeholder pressure
China
Electronics manufacturing sector
PLS-SEM
O32
Q56
M15
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