This study aims to examine the process through which an organization’s proactive environmental strategy affects environmental and market performance. Through the lens of the “strategy-structure-capabilities-performance” (SSCP) framework, the study proposes a theoretical model emphasizing the role of environment proactivity (ENPR) and integration for closed-loop supply chain (CLSC) implementation and subsequently improving performance outcomes.
The proposed model is tested using survey data from 119 USA manufacturing firms by structural equation modeling.
The analysis shows a significant positive effect of ENPR on internal integration. Further, supplier integration mediates between internal integration and CLSC. Interestingly, mediation of customer integration between internal integration and CLSC is not validated. Finally, CLSC positively affects environmental and market performance.
The results guide firms towards CLSC implementation through demonstrating ENPR. The study highlights the importance of internal and supplier integration for CLSC implementation and transitioning towards a circular economy.
