Enabling a Circular Economy Through Green Manufacturing in Chinese Apparel Manufacturers: Antecedents and Outcomes

In this article, we explore the antecedents, mechanisms, and outcomes of constructing firm-level circular economy capacity in Chinese apparel manufacturing firms, with a focus on environmental orientation, green manufacturing methods, and organizational performance. Drawing on the natural-resource-based view (NRBV) theory, we develop a conceptual model and perform a Q-sort pilot study to evaluate the validity and reliability of the measurement items for the subconstructs derived from the model. We analyze relationships among environmental orientation, green manufacturing, organizational performance, and circular economy capabilities in a sample of 374 enterprises using structural equation modeling. Our findings reveal a positive association among environmental orientation, green manufacturing, organizational performance, and circular economy capability. This article offers guidance for businesses to manage their environmental operations consistently and effectively by adopting green manufacturing to establish circular economy capabilities, ultimately attaining synergy between environmental and business performance for a competitive edge. By addressing environmental orientation, green manufacturing, organizational performance, and circular economy capabilities within a conceptual framework, this study contributes to the understanding of circular economy (CE) adoption at the company level. The examination of antecedents, mechanisms, and outcomes for developing circular economy capabilities in apparel manufacturing firms, based on the NRBV theory, introduces a relatively novel perspective and represents a pioneering step in a new line of inquiry.