This paper develops a model to explore the relationships between social pressure,
environmental commitment, green economic incentives, supply chain relationship
management, sustainable supply chain design, and circular economy capability. Through
data gathered from 212 small and medium enterprises (SMEs), this study applies
confirmatory factor analysis (CFA) and structural equation modelling (SEM) to test the model
developed. The findings provide three main contributions to the body of literature. First, they …

Small and medium-sized businesses (SMEs) increasingly know the benefits of improving
resource efficiency and closing loops. These benefits include lowering material costs,
establishing competitive advantages, and gaining access to new markets. As a
consequence of implementing new regulations, manufacturing companies, particularly those
in the automobile industry, are compelled to modify and change their business practices
related to the circular economy (CE). More stringent the implementation of environmentally …