Circular economy from macro to micro: National impact, corporate strategies and digital engagement

Abstract

This PhD thesis analyzes the effects of the circular economy (CE) on sustainable development (SD), environmental performance and corporate reputation. The research employs a multi-level approach, analyzing CE at macroeconomic, meso-economic, and microeconomic levels using both well-known indicators and novel data sources such as social media analytics. Chapter 1 evaluates the relationship between CE strategies—renewable energy, reuse and sharing, repair and remanufacturing, and recycling—and their effects on SD in 25 European countries from 2010 to 2019. Using principal component analysis (PCA) and panel data methodology, the study finds that CE strategies correlate with lower unemployment (social dimension), reduced greenhouse gas (GHG) emissions (environmental dimension), and higher GDP per capita (economic dimension). However, the effects vary: renewable energy and reuse/sharing significantly reduce environmental impact, while recycling has negligible effects, and repair activities unexpectedly increase emissions. Chapter 2 assesses CE relevance in German companies through LinkedIn data. The study tracks CErelated company profiles across Germany’s 16 federal states, revealing a 36.34% increase in CE-active firms within one year. The analysis highlights that industries such as environmental services, management consulting, and IT play a crucial role in CE adoption. However, a predominant focus on recycling emerges, despite its limited macroeconomic impact. Chapter 3 extends the LinkedIn analysis to CE professionals across Austria, Cyprus, Germany, and Greece. A dataset of 3,245 profiles provides insights into demographic characteristics, specializations, job positions, and employers. The findings show that men tend to use more keywords in their profiles, correlating with higher follower counts. Additionally, over 500 unique job titles related to CE are identified, with key employers including BASF (Germany) and the Circular Economy Alliance (Cyprus). Chapter 4 explores the microeconomic effects of CE strategies on corporate environmental performance and reputation. Based on a panel dataset of 67 multinational companies across 12 countries from 2015 to 2023, the results show that renewable energy adoption enhances both environmental performance (lower emissions, reduced energy consumption) and corporate reputation. In contrast, recycling improves energy efficiency but does not significantly impact emissions or reputation. The study also highlights the risks of sustainability policies that fail to yield tangible environmental benefits while strengthening corporate reputation, underscoring the potential for greenwashing. This thesis contributes to CE and business research by integrating macro-, meso-, and micro-level analyses. It provides empirical evidence that CE can drive sustainable development but emphasizes the need for a holistic approach beyond recycling. The research also offers practical implications for companies and policymakers, advocating for stricter sustainability regulations and more comprehensive CE strategies to maximize economic, environmental, and reputational benefits.