Circular Economy Practices in Mauritius: Examining the Determinants

A circular economy (CE) presents a sustainable means of producing goods and services and remains key to the sustainable development agenda. The definition of CE implies promoting economic development through sustainable, efficient energy systems, cost-efficient waste management systems and environmental conservation. Recently, various economies have adopted these practices as an effective means to conserve the environment. Evidence from other studies suggests that countries’ sustainable socio-economic development can be achieved through approaches that enhance resource efficiencies and address existing cross-sectoral challenges in an integrated manner. In this chapter, we analyse the determinants of CE practices of SMEs in Mauritius, where businesses and governments are adopting measures to reverse the traditional model of production and consumption. Our results show that while the individual-level determinants are insignificant, the effects of organisational and country-level factors are significant. The results develop an initial roadmap of how stakeholders can influence the adoption of CE in businesses, particularly SMEs. Our study contributes to stakeholder theory by considering the influence of government and competitors in adopting CE practices among SMEs in emerging economies.