Managerial decisions and new product development in the circular economy model enterprise: absorptive capacity and a mediating role of strategic orientation

Abstract

The study explains the flow of knowledge in the circular economy model enterprises. We analyze the impact of managerial decisions on the absorptive capacity, which is new product develop- ment, considering the role of critical elements of strategic orientation (innovation and costs) in the textile industry. Based on the verification of hypothe- ses by employing the SEM method, innovation orientation is a mediator between adaptability-ori- ented decisions and transformation, and between adaptability-oriented decisions and exploitation. Ambidexterity-oriented decisions affect absorptive capacity. These findings semanticize and extend previous research, indicating that strategic activities focused on eco-innovations are transformed into the process of creating a new product.