Forging Circuits and Bytes: The Mediator with ModeratingEffects of Digital ‎Transformation on The Circular Economy and Sustainable Entrepreneurship

  • Authors

    • Sadananda Sahoo Associate Professor of Economics, Department of Economics, GIET University, Gunupur, Odisha, India
    • Saumendra Das Professor, School of Management Studies, GIET University, Gunupur, Odisha, India
    • Saibabu Neyyila Department of MBA, Aditya Institute of Technology and Management, Tekkali, Andhra Pradesh, India
    • N. Chaitanya Assistant Professor, BS&H Department, Aditya Institute of Technology and Management, Tekkali, Andhra Pradesh, India
    • T. Vinod Kumar Assistant Professor, St. Joseph’s College of Engineering, Chennai
    • Sivanagesh Penta Department of MBA, Aditya Institute of Technology and Management, Tekkali, Andhra Pradesh, India
    https://doi.org/10.14419/tv3wzg33

    Received date: May 31, 2025

    Accepted date: August 2, 2025

    Published date: September 10, 2025

  • Circular Economy; Digital Transformation; Sustainable Entrepreneurship; 5-Point Likert Scale; Structural Equation Modelling

  • Abstract

    Focusing on Micro, Small, and Medium Enterprises (MSMEs) in India, this study examines the intricate connections between Circular ‎Economy (CE), Digital Transformation (DT), and Sustainable Entrepreneurship (SE). A quantitative approach was employed, analyzing ‎survey data from 326 entrepreneurs using Structural Equation Modelling (SEM) to understand how digital transformation mediates and ‎moderates these relationships. The results clearly show that CE positively impacts SE, both directly and indirectly through the influence of ‎DT. However, DT's moderating effect on the CE-SE relationship proved significantly negative, pointing to potential implementation hurdles ‎when these two strategies are pursued concurrently. This research offers valuable theoretical insights into the dual role of digital technologies as either facilitators or barriers within sustainable business models. From a practical standpoint, the findings highlight the importance of ‎integrating digital tools in phases, and policy recommendations are put forth to aid MSME transitions. Ultimately, the study contributes ‎significantly to interdisciplinary literature by creating a bridge between sustainability, entrepreneurship, and digital transformation, particularly relevant for emerging economies‎.

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    Sahoo , S. ., Das, S., Neyyila , S. ., Chaitanya , N. ., Kumar , T. V. ., & Penta , S. . (2025). Forging Circuits and Bytes: The Mediator with ModeratingEffects of Digital ‎Transformation on The Circular Economy and Sustainable Entrepreneurship. International Journal of Accounting and Economics Studies, 12(5), 397-410. https://doi.org/10.14419/tv3wzg33