The effect of environmental commitment on circular economy implementation

Abstract

Studies about the environment are still limited, especially on SME activities whose activities have an impact on the environment. The purpose of this study is to examine and analyze the effect of environmental commitment on circular economy implementation in the small batik industry in Sleman Regency. This study uses quantitative approach with 119 respondents as sample who are owners or managers of the natural dye batik industry in Sleman Regency. The sampling technique uses nonprobability sampling. The data is collected by distributing questionnaires electronically. The research variables are environmental commitment as the independent variable and circular economy implementation as the dependent variable. Researchers use SPSS to analyze the data. The results of the study indicate that environmental commitment has a positive and significant effect on the circular economy implementation in the small batik industry in Sleman Regency. The implication of this study is to enhance the literature and insight for business owners of the batik industry in Sleman Regency to increase the commitment to being responsible to the environment such as to conduct practices that do not damage the environment which will increase the circular economy implementation. Further research needs to examine the impact of the circular economy implementation on business sustainability.