Assessing The Effect of Circular Economy Implementation on Manufacturing Competitiveness: Evidence from Kano State Nigeria
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Abstract
This study examines the effect of circular economy implementation (Reduce, Reuse, Recycle) on manufacturing competitiveness in Kano State, Nigeria, addressing a critical gap in research on sustainable industrial practices in developing economies. Using a cross-sectional survey design, data were collected from 328 manufacturing firms and analysed via Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal significant positive relationships between all three circular economy practices and firm competitiveness, with Reuse (β=0.363, p<0.001) demonstrating the strongest impact, followed by Recycle (β=0.335) and Reduce (β=0.294). The model explains 79.4% of the variance in competitiveness (R²=0.794), demonstrating substantial predictive relevance (Q²=0.467). These results underscore the strategic value of circular economy adoption in enhancing operational efficiency, cost reduction, and market positioning for Nigerian manufacturers. The study contributes to resource-based view theory by positioning circular practices as dynamic capabilities that create sustainable competitive advantages in resource-constrained environments. Practical implications include policy recommendations for circular economy integration in industrial development strategies and firm-level adoption roadmaps to address infrastructure and financial constraints prevalent in Nigeria's manufacturing sector.
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