Impact of circular economy adoption on sustainable business performance in Indian automobile manufacturing firms using a DEMATEL, PLS-SEM, and ANN framework
摘要
This study examines the impact of circular economy (CE) adoption on sustainable business performance (SBP) within the Indian automobile manufacturing sector. Grounded in the resource-based view, institutional theory, and stakeholder theory, the research conceptualizes green innovation (GI) and corporate social responsibility (CSR) as mediators and regulatory pressure (RP) as a moderator. A novel hybrid methodological framework that integrates decision-making trial and evaluation laboratory (DEMATEL), partial least squares structural equation modeling (PLS SEM), and artificial neural networks (ANN) is employed to capture causal relationships, test structural hypotheses, and enhance predictive robustness. Survey data from 412 industry professionals reveal that CE significantly and positively influences SBP, both directly and indirectly through GI and CSR. RP further amplifies this effect, underscoring the role of institutional enforcement in sustainability transitions. DEMATEL highlights CE and RP as primary causal drivers, while ANN ranks CE as the most influential predictor of SBP. The study’s key contribution lies in its multi-method integration and context-specific validation of a comprehensive CE–SBP framework in an emerging economy. While offering significant theoretical and managerial implications, the study is limited by its cross-sectional design and single-industry scope. Future research should adopt longitudinal, multi-sectoral, and cross-country approaches to enhance generalizability and model refinement.