Circular economy in action

Co-creating shared value in the tapioca industry of Indonesia

Abstract

Circular Economy (CE) integrates social and environmental considerations into business strategies, recognizing these aspects as crucial for achieving organizational and ecosystems sustainability. While previous studies on CE and its correlation with Creating Shared Value (CSV) predominantly focus on developed nations, this research aims to fill the gap by showing an empirical investigation of the implementation of a circular business model in the tapioca industry of Indonesia. This study employed the Triple Bottom Line (TBL) framework, encompassing economic, environmental, and social performance and analysed 132 survey responses from tapioca business managers and owners in Indonesia using a quantitative approach with SmartPLS 4. The findings indicate that CE and CSV practices positively influence TBL performance and reveal a strong association between CE practices and CSV opportunities. By aligning with the TBL framework, this study highlights the transformative potential of CE and CSV practices in driving sustainability, profitability, and social equity in the global agroindustry.