Open Access Article SciPap-2124
Diversity of Cooperation Networks and Environmental Orientation in Spanish SMEs Transitioning to Circularity
by Juan Jaime Arroyave 1,* iD icon, Francisco J Sáez Martínez 2 iD icon, Pablo Ruiz Palomino 3 iD icon and Angela González Moreno 4 iD icon

1 Faculty of Business, Management and Law, CES University, Calle 10 A 22-04 Medellin, Colombia, Medellin 050021, Colombia

2 Faculty of Economics and Business Administration, University of Castilla-La Mancha, Av. de España, s/n, 02001, Albacete, Spain, Albacete 2072, Spain

3 Faculty of Economics and Business Administration, University of Castilla-La Mancha, Avenida de los Alfares, Cuenca, Spain, Cuenca 16002, Spain

4 Faculty of Economics and Business Administration, University of Castilla-La Mancha, Av. de España, s/n, 02001, Albacete, Spain, Albacete 2072, Spain

* Authors to whom correspondence should be addressed.

Abstract: Firms are increasingly adopting circular economy (CE) practices to meet the growing demand for sustainability, but most small and medium-sized enterprises (SMEs) have been unable to adopt them due to limited resources, capabilities, and a lack of environmental culture. However, SMEs with an environmental orientation and diverse cooperation networks tend to find this adoption easier. This article examines the role of environmental orientation and the moderating effects of cooperation with diverse networks on the adoption of the following CE practices: CE-based service provision, CE-based communication, CE-based design for production, and CE-based manufacturing. The study is based on a survey conducted with managers from 300 SMEs in the Spanish manufacturing sector. The results, analyzed through structural equation modeling, confirm that both environmental orientation and the diversity of cooperation networks significantly influence the adoption of CE practices among SMEs. These findings have significant implications for business managers, urging them to adopt an environmental orientation and diversify their cooperation networks to access the resources necessary to implement CE practices. Furthermore, policymakers are encouraged to promote the diversification of SME cooperation networks, for example, by fostering partnerships through incentives that support digital platforms for these interactions, ultimately contributing to a more sustainable economy.

Keywords: Stakeholders, Circular Economy Practices, Environmental Orientation, Diversity Of Cooperation, Networks, Small And Medium-Sized Enterprises.

JEL classification:   L25 - Firm Performance: Size, Diversification, and Scope,  M1 - Business Administration,   M21 - Business Economics,   Q01 - Sustainable Development

SciPap 2025, 33(1), 2124; https://doi.org/10.46585/sp33012124

Received: 28 October 2024 / Revised: 9 April 2025 / Accepted: 24 April 2025 / Published: 30 May 2025