Role of Innovation and Technology in Advancing Circular Economy Practices of FMCG Companies: An Empirical Analysis
Pragati Shukla *
Faculty of Management Studies, University of Lucknow, UP, India.
Mohammad Anees
Faculty of Management Studies, University of Lucknow, UP, India.
Adarsh Mishra
Department of Commerce, University of Lucknow, UP, India.
*Author to whom correspondence should be addressed.
Abstract
Circular economy frameworks have gained popularity as sustainable solutions for resource-intensive businesses. In India's fast-moving consumer goods (FMCG) sector, which produces a substantial amount of packaging and product waste, innovation and technology are thought to allow circular practices. For example, modern recycling systems and digital tracking technologies make it easier to reuse materials and reduce waste. However, empirical research on how innovation and technology adoption influence circular economy implementation in FMCG enterprises, notably in Uttar Pradesh, is sparse. This study addresses the gap by looking at the role of innovation and technology in developing circular economy practices across Uttar Pradesh's FMCG industries. Our goals include identifying important innovation-driven initiatives and evaluating their influence on organizations' circularity and sustainability performance. A structured survey of 8 FMCG companies in Uttar Pradesh was undertaken, and quantitative analysis was used to analyze the correlations by using multiple regression analysis and structural equation modelling among firms' innovation orientation, technology adoption, and circular practices. The findings indicate a strong positive association; organizations with stronger creative capabilities and integrated technical solutions for higher adoption of circular processes. These findings provide useful information for managers and policymakers.
Keywords: Circular economy, sustainability, innovation, FMCG sector, technology adoption