“Driving Sustainability in Indian MSMEs: Linking Corporate Governance with Circular Supply Chain Practices”

Corporate Governance, Circular Supply Chain, Sustainable Manufacturing, MSMEs, PLS-SEM

This paper investigates the contribution of corporate governance to the realization of circular supply chain practices and an improvement of sustainable manufacturing performance in the Indian MSMEs. Based on the recent sustainability and governance literature, the study creates an integrated framework that connects the weapons of governance as board structure, regulatory compliance and transparency to the circular practices, including reusing, recycling, remanufacturing, and reverse logistics. Quantitative research design is used and the data gathered involve 200 MSMEs and the analysis of data by means of Partial Least Squares Structural Equation Modeling (PLS-SEM) is carried out. The findings indicate that the adoption of circular supply chain practices depends greatly on corporate governance, which has a positive impact on sustainable manufacturing performance. Also, circular practices are identified to mediate between the governance and the sustainability results. The research will add to the body of literature as it will combine the governance and the views of the circular economy and give a real practice to managers and policy makers to enhance sustainability in MSMEs via governance-based approaches.