This study aims to investigate the adoption of circular economy practices (ACEP) within small and medium-sized enterprises (SMEs) in Sub-Saharan Africa. It focuses on understanding how internal capabilities and external knowledge sources influence sustainability outcomes across economic, environmental and social dimensions.
The study used a sample of 978 SMEs from Kenya, South Africa and Nigeria. Structural equation modeling (SEM) is applied to explore the relationships between knowledge sharing, circular economy adoption and sustainability outcomes. Data were collected through surveys, and the analysis examines both the direct and mediating effects of internal knowledge sharing (IKS) and external knowledge sharing (EKS).
The results show that both IKS and EKS significantly drive the adoption of circular economy practices, which in turn positively influence economic performance (EP), environmental sustainability (ES) and social sustainability (SS). IKS and EKS also act as mediators in these relationships. The study highlights the unique challenges SMEs face in Sub-Saharan Africa, including resource constraints and political stability, which impact the adoption process.
Policymakers and SMEs can use these findings to create strategies that strengthen internal capabilities and foster external partnerships to overcome barriers and enhance sustainability practices in Sub-Saharan Africa. These insights can help improve the competitiveness and resilience of SMEs in the region.
This study contributes to the circular economy literature by addressing the underexplored context of Sub-Saharan Africa. It revises existing theoretical models by incorporating internal and external knowledge networks, offering a more context-specific framework for circular economy adoption in emerging economies.
