Circular economy as a determinant of sustainable performance in selected manufacturing sectors

The circular economy represents a contemporary concept of sustainable development aimed at improving resource efficiency and reducing the negative environmental impact of production activities. This concept is particularly significant in manufacturing sectors, which are characterized by intensive use of raw materials and high levels of waste generation. The aim of this paper is to examine the role of the circular economy as a determinant of sustainable performance in selected manufacturing sectors. The empirical research was conducted on a sample of 63 medium-sized and large enterprises from the food, plastics, and textile industries in the Republic of Serbia. Exploratory factor analysis, reliability analysis (Cronbach's alpha), and multiple regression analysis were applied in the data analysis. The results indicate that the implementation of circular economy principles has a statistically significant positive impact on the sustainable performance of enterprises, with the strongest effect identified in the areas of resource optimization and waste management. Furthermore, innovation was found to play a moderating role in the relationship between the circular economy and sustainable performance. The obtained results contribute to a better understanding of the importance of the circular economy in industries with significant environmental impact and highlight the need for a more intensive implementation of circular practices in order to enhance competitiveness and sustainability.