Sustainable Supply Chain Resilience: Analyzing the Effects of Green Innovation and Circular Economy Practices in Emerging Markets

Abstrak

This study examines how green innovation and circular economy (CE) practices influence sustainable supply chain resilience (SCR) in emerging-market firms. Drawing on dynamic capabilities and resource-based perspectives, we propose and test a model where green innovation (product, process, and organizational) directly enhances SCR and indirectly does so by promoting circular practices (reverse logistics, reuse/remanufacturing, and eco-design). Using survey data from 438 managers across manufacturing and fast-moving consumer goods (FMCG) firms in three emerging economies, structural equation modeling shows that: (1) green innovation has a significant positive effect on SCR; (2) circular economy practices mediate the relationship between green innovation and SCR; and (3) digitalization (supply-chain analytics / Industry 4.0 tools) strengthens the effect of circular practices on resilience. The findings imply that firms in emerging markets can build both sustainability and robustness by combining green R&D, circular operational routines, and targeted digital investments. Practical recommendations include phased CE adoption (start with reverse logistics and eco-design), capability building for green innovation, and policy incentives to de-risk circular investments. This research contributes an integrated empirical view linking innovation, CE practices, and resilience in contexts where resource constraints and institutional barriers matter.