Enhancing Circular Economy Practices Through Environmental Knowledge: Impacts on Resource Efficiency, Sharing Economy, and Performance-based Contracts in Corporate Sustainability

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Asep Marfu, Agung Purwanto, Dwi Atmanto, Nadiroh Nadiroh, Hafid Abbas, Muhammad Zid, Munawar Asikin

2026 Circular Economy and Sustainability Vol. 6 Issue 2 Article Cited by 0 SDG 12 Quartile

Abstract

This study aims to analyze the impact of environmental knowledge on resource efficiency, the sharing economy, and performance-based contracts, as well as their effects on corporate sustainability in the manufacturing sector in Indonesia. The study also examines the role of consumer behavior as a moderating factor in these relationships. A quantitative approach was employed using surveys involving manufacturing companies in Indonesia. The collected data were analyzed using statistical techniques to test the formulated hypotheses. The results indicate that environmental knowledge has a significant positive impact on resource efficiency, the sharing economy, and the adoption of performance-based contracts. Furthermore, resource efficiency and performance-based contracts were found to positively affect corporate sustainability. Consumer behavior was found to moderate the relationship between environmental knowledge and resource efficiency, the sharing economy, and performance-based contracts. However, consumer behavior did not moderate the relationship between resource efficiency, the sharing economy, and corporate sustainability. The main contribution of this research is providing insights into the importance of integrating environmental knowledge into business practices to enhance resource efficiency and corporate sustainability. These findings can be used by manufacturing companies to develop more effective sustainability strategies that are aligned with the growing market demand for environmentally conscious practices. © The Author(s), under exclusive licence to Springer Nature Switzerland AG 2026.

Affiliations

Doctoral Program of Population and Environmental Education, Jakarta State University, Jakarta, Indonesia

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