Structural equation modeling reveals sustainability communication mediates the effect of strategic orientations on eco-design in circular business models, highlighting its critical role.
This study investigates the strategic drivers of eco-design implementation within firms, focusing on the roles of environmental orientation, technological orientation, and sustainability communication. Drawing on the Resource-Based View (RBV), these constructs are conceptualized as intangible assets and dynamic capabilities that enable organizations to align internal sustainability values with external stakeholder expectations. Using Partial Least Squares Structural Equation Modelling (PLS-SEM), the results show that environmental and technological orientations do not exert significant direct effects on eco-design. Instead, their influence operates through sustainability communication, which emerges as the central mediating capability that translates strategic orientations into eco-design practices within circular economy business models.
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Avellaneda-Rivera et al. (2026) studied this question.
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