Money matters: The role of money as a regional and corporate financial resource for circular economy transition at firm-level

Meili, Rahel; Stucki, Tobias (2023). Money matters: The role of money as a regional and corporate financial resource for circular economy transition at firm-level Research Policy, 52(10), p. 104884. Elsevier 10.1016/j.respol.2023.104884

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This study addresses the role of different financial resources in driving circular economy activities at the firm level, which are a particular form of innovation. While the impact of financial resources on innovation activities has been widely researched, their relationship with the circular economy has not been adequately studied. Previous studies have focused primarily on corporate financial resources and investments by banks and investors. By using unique survey data from Swiss firms, we break new ground by examining the importance of regional financial resources, including regional household income and public procurement volumes. In doing so, we make a valuable contribution to the fields of (eco-)innovation and economic geography. We also examine the timing of financial resource deployment, looking at both early adopters and pioneers of the circular economy. Our results, derived from a comprehensive multivariate regression analysis that includes a representative sample of over 1000 observations, confirm that regional household income and public procurement volumes play a central role in the successful implementation of the circular economy – that is, money matters. Additionally, our research reveals distinct and independent impacts of corporate and regional financial resources, advocating for their combined influence. Importantly, we find that financial resources are crucial for both beginners and leaders in the circular economy, emphasizing the profound policy implications and central role in driving and supporting the circular economy.

Item Type:	Journal Article (Original Article)
Division/Institute:	Business School > Institute for Sustainable Business Business School > Institute for Sustainable Business > Circular Economy Business School
Name:	Meili, Rahel0000-0002-1185-2781 and Stucki, Tobias0000-0002-2400-0107
Subjects:	G Geography. Anthropology. Recreation > G Geography (General) H Social Sciences > HB Economic Theory H Social Sciences > HG Finance H Social Sciences > HJ Public Finance
ISSN:	00487333
Publisher:	Elsevier
Language:	English
Submitter:	Rahel Meili
Date Deposited:	19 Sep 2023 15:35
Last Modified:	20 Sep 2023 09:35
Publisher DOI:	10.1016/j.respol.2023.104884
Uncontrolled Keywords:	JEL classification: O30 O33 Q55 Keywords: Circular economy Regional sustainability transition Financial resources Company level data Quantitative analysis Public procurement Household income Geography of innovation
ARBOR DOI:	10.24451/arbor.19958
URI:	https://arbor.bfh.ch/id/eprint/19958