Transition to the circular economy under the pressure of the COVID-19 pandemic and stakeholders: application in international firms toward sustainable development goals

Abstract

This research aims to examine the influence of stakeholders and the COVID-19 pandemic on the transition towards a circular economy of firms, as well as the consequences of this transition on sustainable development. Using the SEM-PLS model to analyze survey data from 358 international firms, the research indicated that pressure from the COVID-19 outbreak, and the involvement of stakeholders affected the shift to a circular economy. The COVID-19 epidemic has caused huge issues for the whole planet, but it is also seen as a crucial motivator for expediting the move to a circular economy. The transition to the circular economy in companies has been demonstrated to be negatively impacted by obstacles and barriers resulting from stakeholder pressure, while the transition is positively impacted by opportunities and advantages supplied by stakeholders. In addition, the study reveals that the shift to a circular economy will aid multinational firms in achieving sustainable development. A range of recommendations are made in light of the study’s results for assisting businesses undertake a transition to a circular economy.