Driving Sustainability: The Role of Environmental Innovation and Gender Diversity in the Adoption of Circular Economy Strategies

The increased focus on sustainability has led companies to move from a linear to a circular paradigm of production and consumption, defined as the circular economy (CE). The adoption of the CE aims to protect the environment by reducing waste and promoting reuse. This approach has been widely explored in academic discussions. Public and private organizations emphasize the need to adopt these models to promote sustainable development, as highlighted in the United Nations Sustainable Development Goals (UN SDGs). However, despite the significant interest in CE initiatives, there is a notable lack of empirical research identifying the key factors influencing their implementation. This study seeks to address this gap by examining the impact of innovation and gender diversity on the adoption of eight strategies related to the CE. A Tobit model was used to test the proposed hypotheses. The analysis focused on a sample of 872 European companies with large market capitalization; data were retrieved from the LSEG Refinitiv database for the year 2023. This study adds to the current literature on the determinants of CE adoption and shows how environmental innovation can foster the adoption of CE strategies. At the same time, the study emphasizes that gender diversity has a negative impact on the adoption of the CE. The study also offers practical implications for policymakers, companies, and governments