Circular Economy and the Productivity of Food Processing MSMEs The Mediating Role of Resource Efficiency
Keywords:
Agri-food entrepreneurship, Material yield, Operational performance, Waste valorization, Small business sustainabilityAbstract
Purpose - This study tests whether circular economy practices improve food-processing MSME productivity through resource efficiency.
Methodology - The draft uses an explanatory survey design, a reflective-formative model, PLS-SEM, 271 illustrative cases, and 10,000 bootstrap subsamples.
Findings - Illustrative estimates show positive direct effects on resource efficiency and productivity. Resource efficiency mediates 51.41% of the total effect. The model explains 38.8% of resource efficiency and 50.6% of productivity.
Implications - Managers should prevent material loss, standardize production, monitor water and energy use, and recover value from by-products. Policy support should link environmental programs with productivity assistance.
Originality - The model separates operational productivity from broad sustainability performance and identifies resource efficiency as the mechanism that converts circular practices into productive value.
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