Exploring the Impact of Circular Economy on Boosting the Economic Viability of Marginal Areas of Tabriz considering the Mediating Role of Social Entrepreneurship

Document Type : *

Authors

• Reza Norouzi Ajirloo ¹
• Moslem Soleymanpor ¹
• Seyed Mohammad Reza Movahed ²

¹ Assistant Professor, Department of Business Management, Payame Noor University, Tehran, Iran

² PhD Candidate, Department of Business Management, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran

https://doi.org/10.22067/jgrd.2023.84462.1331

Abstract

Livability may include various factors depending on the dominant local socio-economic and cultural conditions. Since currently, livability is considered a prerequisite for a healthy life as well as economic and social survival, it would be so significant to improve the quality of life. Here, circular economy has been offered as an appropriate way to tackle lack of resources and a driver to have a sustainable economic system. The descriptive-survey study explored the impact of circular economy (recycling, production, and reuse) on economic viability through assessing the role of social entrepreneurship. The statistical population consisted of 80 managers and experts as supporting active social businesses in Tabriz. They were selected using random and snowball sampling methods. Moreover, standared and researcher-made questionnaires were applied for collecting the data. Hypothesis testing was done through SMART-PLS, using t-test and path coefficients (B). The results showed that there is a positive significant relationship between circular economy components (reuse, production, and recycling) and economic viability (employment and income, household expenses, and values of land and housing) at a significance level of 0.001. Moreover, the stody confirmed the positive impact of mediating variable “social entrepreneurship” on “economic viability” (B=0.681). So, it becomes clearly necessary to mitigate the use of natural resources through reusing and recycling products to achieve economic viability, considering the role of social entrepreneurs, positive social and environmental effects, and developing business models.
 
 

Keywords

• Economic Viability
• Circular Economy
• Social Entrepreneurship

Main Subjects

• *

References

1. ساسان پور، ف.، تولایی س.، و جعفری اسدآبادی، ح. (1393). قابلیت زیست پذیری شهرها در راستای توسعه پایدار شهری (مورد مطالعه: کلانشهر تهران).‎ جغرافیا (فصلنامه علمی ـ پژوهشی و بین­المللی انجمن جغرافیای ایران)، 12(42)، 129-157.
2. شهدکار، ف.، ترابی، ‌ت.، و رهنمای‌رودپشتی، ف. (1401). تحلیل عوامل مؤثر بر توسعه اقتصاد دایره‌ای در ایران.تحلیل‌های اقتصادی توسعه ایران، 21(8)، 17-42.‎
3. شهدکار، ف.، ترابی، ‌ت.، و رهنمای‌رودپشتی، ف. (1401). مدل کسب‌وکار دایره‌ای ابزار توسعه در فرایند گذار به اقتصاد دایره‌ای: ارائه یک مدل در سطح شرکت‌های دانش بنیان.نظریه‌های کاربردی اقتصاد، 35(9)، 133-158.
4. علینقی‌پور، م.، پوررمضان، ع.، و مولایی‌هشجین، ‌ن. (2022). زیست‌پذیری اقتصادی سکونتگاه‌های روستایی پیرامون کلان‌شهر رشت. اقتصاد فضا و توسعه روستایی، 39(11)، 67-86.‎
5. محمودزاده، ح.، علیرضایی، م.، و زارعی، ع (1397). رویکرد تحلیلی بر علل و پیامدهای شکل گیری مناطق حاشیه‌نشین کلانشهر تبریز.پژوهش‌های مکانی فضایی، 2(6)، 1-21.‎
6. نیکدل، ن.، شهماری اردجانی، ر.، حسنی مهر، س ص.، اصغری، ح. (1401). تحلیل زیست‌پذیری اقتصادی سکونتگاه‌های روستایی شهرستان صومعه‌سرا. مهندسی جغرافیایی سرزمین، 6(2)، 261-276.
7. وقار موسوی، م.، قدس علوی، آ.، و عباسی، م. (1395). بررسی نقش کارآفرینی اجتماعی در توسعه عدالت اجتماعی.مطالعات کارآفرینی و توسعه پایدار کشاورزی، 3(2)، 59-76.‎
8. Aulia, D. N. (2016). A framework for exploring livable community in residential environment. Case study: public housing in Medan, Indonesia. Procedia-Social and Behavioral Sciences, 234, 336-343.
9. Bragado, N., Corbett, J., & Sprowls, S. (2001). Building livable communities, a policymaker’s guide to infill development, prepared by the center for livable communities and a local government commission initiative, Environmental Protection Agency and San Joaquin Valley Unified Air Pollution Control District 2001 update funded by the U.S. Environmental Protection Agency, 1-48.
10. Chatterjee, A. (2020). Financial inclusion, information and communication technology diffusion, and economic growth: a panel data analysis. Information Technology for Development, 26(3), 607-635.
11. Ciani, A., Gambardella, A., & Pociovalisteanu, D. M. (2016). Circular economy and sustainable rural development. Theory and best practice: A challenge for Romania. Annals-Economy Series, 1, 52-56.
12. Corral, F. J. G., Vázquez, R. M. M., García, J. M., & de Pablo Valenciano, J. (2022). The circular economy as an axis of agricultural and rural development: The case of the municipality of Almócita (Almería, Spain). Agronomy, 12(7), 1553.
13. de Bruin, A., & Teasdale, S. (2019). Exploring the terrain of social entrepreneurship: New directions, paths less travelled. In A. de Bruin & S. Teasdale (Eds.), Research agenda for social entrepreneurship (pp. 1–12). Edward Elgar.
14. Domanski, D., Howaldt, J., & Kaletka, C. (2020). A comprehensive concept of social innovation and its implications for the local context–on the growing importance of social innovation ecosystems and infrastructures. European Planning Studies, 28(3), 454-474.
15. Doost Mohammadian, H., & Rezaie, F. (2019). Sustainable innovative project management: Response to improve livability and quality of life: Case studies: Iran and Germany. Inventions, 4(4), 2-19.
16. El Chaarani, H., & Raimi, L. (2022). Determinant factors of successful social entrepreneurship in the emerging circular economy of Lebanon: Exploring the moderating role of NGOs. Journal of Entrepreneurship in Emerging Economies, 14(5), 874-901.
17. Ellis, P., & Roberts, M. (2015). Leveraging urbanization in South Asia: Managing spatial transformation for prosperity and livability, Washington, DC: World Bank.
18. European Parliament. (2023).  Circular economy: definition, importance and benefits
19. Geissdoerfer, M., Savaget, P., Bocken, N.M.P., Hultink, E. J. (2017). The circular economy: a new sustainability paradigm? Journal of Cleaner Production, 143, 757–768.
20. Giap, T. K., Thye, W. W., & Aw, G. (2014). A new approach to measuring the liveability of cities: The Global Liveable Cities Index. World Review of Science, Technology and Sustainable Development, 11(2), 176-196.
21. Gutberlet, J. (2023). Grassroots eco-social innovations driving inclusive circular economy. Detritus, 3(22), 2-12.
22. Heylen, K. (2006). Liveability in social housing: Three case studies in Flanders. In ENHR Conference'Housing in an Expanding Europe: Theory, Policy, Implementation and Participation, Ljubljana (Slovenia).
23. Huybrechts, B., Nicholls, A. (2012). Social Entrepreneurship: Definitions, Drivers and Challenges. In: Volkmann, C., Tokarski, K., Ernst, K. (eds) Social Entrepreneurship and Social Business. Gabler Verlag. (pp. 31-48). https://doi.org/10.1007/978-3-8349-7093-0_2
24. Iraldo, F., & Bruschi, I. (2015). Economia Circolare: principi guida e casi studio. Green Economy Observatory, IEFE Bocconi, Milano. https://www.assolombarda.it/servizi/ambiente/documenti/rapporto-geo-sulla-circular-economy.
25. Kashef, M. (2016). Urban livability across disciplinary and professional boundaries. Frontiers of Architectural Research, 5(2), 239-253.
26. Korhonen, J., Nuur, C., Feldmann, A., & Birkie, S. E. (2018). Circular economy as an essentially contested concept. Journal of Cleaner Production, 175, 544-552.
27. Kovacs-Györi, A., Cabrera-Barona, P., Resch, B., Mehaffy, M., & Blaschke, T. (2019). Assessing and representing livability through the analysis of residential preference. Sustainability, 11(18), 1-23.
28. MacArthur, E. (2013). Towards the circular economy. Journal of Industrial Ecology, 2(1), 23-44.
29. Martin, R. L., & Osberg, S. (2007). Social entrepreneurship: The case for definition. Stanford Social Innovation Review, 5(2), 29-39.
30. Mies, A., & Gold, S. (2021). Mapping the social dimension of the circular economy. Journal of Cleaner Production, 321(1), 1-17. https://doi.org/10.1016/j.jclepro.2021.128960
31. Mihai, F. C. (2023). Circular Economy and sustainable rural development. Sustainability, 15(3), 2139.
32. Pearce, D., & Turner, R. K. (1990). Economics of natural resources and the environment. London: Harvester Wheatsheaf.
33. Retrieved from: https://www.europarl.europa.eu/news/en/headlines/economy/20151201STO05603/circular-economy-definition-importance-and-benefits
34. Roberts, D., &Woods, C. (2005). Changing the world on a shoestring: The concept of social entrepreneurship. University of Auckland Business Review, 7(1), 45–51.
35. Saidani, M., Yannou, B., Leroy, Y., Cluzel, F., & Kendall, A. (2019). A taxonomy of circular economy indicators. Journal of Cleaner Production, 207, 542-559.
36. Squazzoni, F. (2009). Social entrepreneurship and economic development in Silicon Valley: A case-study on the joint-venture: Silicon Valley network. Nonprofit and Voluntary Sector Quarterly, 38(5), 869-883.
37. Su, B., Heshmati, A., Geng, Y., & Yu, X. (2013). A review of the circular economy in China: Moving from rhetoric to implementation. Journal of Cleaner Production, 42, 215-227.
38. Szibbo, N. A. (2015). Livability and LEED-ND: The challenges and successes of sustainable neighborhood rating systems (Master’s thesis). University of Californi, Berkeley proquest dissertations publishing.
39. Valencia, M., Bocken, N., Loaiza, C., & De Jaeger, S. (2023). The social contribution of the circular economy. Journal of Cleaner Production, 408, 137082.
40. Van Kamp, I., Leidelmeijer, K., Marsman, G., & De Hollander, A. (2003). Urban environmental quality and human well-being: Towards a conceptual framework and demarcation of concepts; a literature study. Landscape and Urban Planning, 65(1-2), 5-18.
41. Veenhoven, R. (2000). The four qualities of life: Ordering Concepts and Measures of the Good Life, The United Nations University World Institute for Development Economics Research, 1–34. file:/// C: /Users/ SIB/ Downloads/ 2000c-full. pdf
42. Wang, C., Yu, C., Chen, T., Feng, Z., Hu, Y., & Wu, K. (2020). Can the establishment of ecological security patterns improve ecological protection? An example of Nanchang, China. Science of the Total Environment, 740(1), 1-43.
43. Xiao, Y., Li, Y., Tang, X., Huang, H., & Wang, R. (2022). Assessing spatial–temporal evolution and key factors of urban livability in arid zone: The case study of the Loess Plateau, China. Ecological Indicators, 140(1), 1-26.
44. Yi, X., Jue, W., & Huan, H. (2021). Does economic development bring more livability? Evidence from Jiangsu Province, China. Journal of Cleaner Production, 293, 1-10.
45. Zhan, D., Kwan, M. P., Zhang, W., Fan, J., Yu, J., & Dang, Y. (2018). Assessment and determinants of satisfaction with urban livability in China. Cities, 79, 92-101.