A Sustainable Circular Business Model to Improve the Performance of Small and Medium-sized Enterprises Using Blockchain Technology

Abstract

The paper analyzed the function of Blockchain Technology (BT) in the Circular Economy (CE) to improve the performance of Small and Medium-sized Enterprises (SMEs). It presents a Sustainable Circular Business (SCB) model that utilizes BT to improve the performance of SMEs. A closed-ended questionnaire survey was conducted to gather cross-sectional data from 275 SMEs. A total of 400 questionnaires were issued, of which 285 were received. The CE method in Circular Supply Chain Management (CSCM) provides both ecological and economic advantages to organizations. The advent of the Industry 4.0 era has brought about a strong focus on technology across all industries. The emergence of BT, a relatively new phenomena, has significant potential for enhancing the processes of SMEs. The findings indicate that BT favors the CE due to its characteristics like exposure, accountability, relationship management, and smart contracting. Also, it has been discovered that adopting environmentally friendly methods had a beneficial connection with both the environmental and economic aspects of SMEs performance. Additionally, it was also seen that the ecological sustainability of the business had a favorable relationship with its economic well-being. Finally, it was discovered that both sustainability and economic capabilities were responsible for enhancing the performance of SMEs.