3.2.3. Cluster 3 (Factor Affecting Circular Economy Practices and Sustainability)

In this cluster, we group the determinants of the circular economy into building sustainability. So far, the circular economy has been carried out in companies with a high level of readiness, such as the automotive industry, because they have circular supply-chain management [66,67], sustainable product development [68], and value co-creation [69]. The literature reveals that the circular economy approach is an important trigger in building environmental economics towards a green economy [70]. Assuming that the green economy can be stimulated by circular economy practices, it will have an impact on the realization of three things: first, social sustainability; second, sustainability transformation; and third, corporate sustainability [71,72].

The challenge of implementing the circular economy is that the organization is not ready to implement this due to a lack of method [19], the adoption of technology that costs a lot [73], and sustainability challenges [56]. For this reason, it is necessary to increase understanding of knowledge management and open innovation [74] to make product designs and product development in building environmental organizational legitimacy [75]. Obviously, the positive impact is that corporate leaders have profitable options to realize sustainability goals [30,71].
