23 Dec 2025
A paper titled “How does green innovation capability affect circular supply chain management adoption: An institutional theory perspective” co-authored by Professor Lujie Chen from the International Business School Suzhou (IBSS) at Xi’an Jiaotong-Liverpool University (XJTLU), and other researchers, has been accepted and published in the British Journal of Management, an ABS 4 and Tier 1* ranked journal. This study examines the challenges of circular economy development under resource constraints and tightening regulatory frameworks in the manufacturing sector, offering new insights with both theoretical value and practical significance for the deeper integration of green innovation and circular supply chain management.
Currently, the manufacturing industry is facing severe challenges, including constrained resource supply and the continual strengthening of environmental regulatory standards. Against this backdrop, the Circular Economy (CE) has emerged as a key pathway to overcoming bottlenecks that hinder the industry's development. The study defines the circular economy as a regenerative economic system that minimises resource input, waste generation, pollutant emissions and energy consumption by "slowing, closing and narrowing" the material and energy cycles. This approach not only reduces the consumption of natural resources and the emission of harmful pollutants, but also creates additional value for industries through sustainable business models. As the core carrier for the implementation of the circular economy, Circular Supply Chain Management (CSCM) plays a critical role in resource recovery and reuse, while maximising utilisation efficiency within the entire supply chain system.
Although Green Innovation (GI) is closely aligned with the core goals of the circular economy—both guided by the principle of "creating economic value while improving the ecological environment"—a practical dilemma has long persisted in academia and industry: can green innovation steadily drive the implementation of CSCM in practice? This question is particularly relevant where enterprises face high operating costs and need to prioritise the durability of product technologies, leading to ongoing uncertainty regarding the effectiveness of this driving force.
The research conducted by Professor Chen's team offers a fresh perspective on resolving this contradictory situation. The findings indicate that environmental information disclosure and compliance with environmental regulations can significantly enhance the efficiency with which green innovation is translated into CSCM practices. . This helps explain why it is difficult for enterprises to effectively implement CSCM by relying solely on a single method, whether focusing solely on innovation, only on new technologies, or merely on regulatory compliance.. The study specifically points out that in emerging markets (such as China), where the institutional environment differs from that of developed economies, promoting the circular economy through green innovation to restructure production models can effectively ease resource constraints. Furthermore, the transparency of environmental information disclosure and the depth of environmental regulation compliance are even more crucial to the successful promotion of CSCM.
Based on the research conclusions, the team has put forward four targeted practical pathways. Firstly, promote "end-to-end collaboration" between green innovation and CSCM, positioning green innovation as a core capability for implementing circular economy strategies rather than an isolated R&D activity. By setting internal milestones, enterprises can link innovation projects to quantifiable indicators such as "resource recovery rate" and "reutilisation rate" to ensure that the value of innovation is converted into circular economy benefits. Secondly, strengthen Environmental Information Disclosure (EID) and build a disclosure system with unified content and accurate data. This system not only conveys enterprises' environmental responsibilities and enhances the trust of stakeholders but also provides legitimate support for the continuous advancement of CSCM. Thirdly, embed Environmental Regulation Compliance (ERC) into the routine organizational processes, going beyond the basic requirement of "meeting external requirements." Through structured processes and accountability mechanisms, firms can integrate green innovation into daily operations, and use compliance inspections to promptly address issues and prevent the stagnation of innovation pilots. Fourthly, when planning the transformation pathways, enterprises should take into account both competitive pressures and macro-institutional factors. Enterprise decision-making needs to simultaneously consider economic goals, alongside the rules and values of the institutional environment, and adjust circular economy strategies in light of local market characteristics to ensure that the strategies possess both industry adaptability and implementation resilience. In summary, this study offers practical and actionable recommendations for manufacturing enterprises and policymakers, and holds important practical significance for promoting the green industrial transformation and enhancing the sustainable competitiveness of the industrial chain.
Lujie Chen is a full Professor of Management at Xi’an Jiaotong-Liverpool University. Prof Chen is Elsevier-Stanford University World's Top 2% Scientists 2024 and 2025 (the only one in IBSS). She is a Fellow of the Higher Education Academy in the UK and an expert in the fields of supply chain management and business analytics. Professor Chen has published over 60 high-quality and impactful papers in top-tier journals such as the Journal of Operations Management (UTD 24), Harvard Business Review (FT50), International Journal of Operations and Production Management (ABS 4), British Journal of Management (ABS 4), and European Journal of Operational Research (ABS 4), among others. She has served as a guest editor for special issues of several respected journals such as International Journal of Operations and Production Management, Industrial Marketing Management, International Journal of Production Economics, and Journal of Business Research. She is currently serving as an Associate Editor for the International Journal of Operations and Production Management (ABS 4) and department editor for IEEE TEM (ABS 3) and editorial board for Humanities and Social Sciences Communications (Nature Portfolio，CAS Humanities Q1 & JCR Q1).
The British Journal of Management is the official journal of the British Academy of Management, recognized as a premier academic publication in the field of management (ABS 4-star rated) and one of the highest-ranked journals in the UK business school lists, renowned for its high-quality multidisciplinary and interdisciplinary research.
23 Dec 2025