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Driving circular business model adoption through sustainable innovation: The role of green knowledge management, innovation-oriented culture, and green financial resource availability in Chinese firms
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DOI：10.1016/j.jik.2026.101099.png)
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Abstract
En 中文
This study investigates the relationship between Green Knowledge Management, Innovation-Oriented Culture, and Green Financial Resource Availability and Circular Business Model adoption mediated by Sustainable Innovation and moderated by Top Management Commitment to Circularity. The transition to circular business model has become company’s strategic focus that aim to improve environmental sustainability and competitive edge, especially in the new economies like China. Data were collected using quantitative survey involving 322 Chinese companies working in sustainability-intensive sectors using a structured online questionnaire. Smart-PLS was used to analyze measurement and structural model. The findings indicate there are three internal enablers positively affect Sustainable Innovation and influence the adoption of the circular business practices. In addition, top-management commitment positively affects the process of circular adoption and influence the transformation of sustainable innovation programs into real circular conditions. This study contributes theoretically to the capabilities-based innovation processes and strategic leadership dynamics within the context of the circular transformation. Practically, the results suggest that companies should enhance the knowledge base, advance innovation-driven principles, plan for financial resources, and engage in proactive management behavior to speed up their transition to circularity. These findings are valuable for administrators and policymakers who plan to promote sustainability-based development in the industrial context.
Keywords:
Sustainable innovation
Circular business model adoption
Green Knowledge management
Leadership commitment
China
O31
Q56
M14
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