GREENING COMPLIANCE WHEELS: LINKING ENVIRONMENTAL LAWS, CIRCULAR ECONOMY, AND DIGITAL INNOVATION TO SAUDI ORGANIZATIONS’ PERFORMANCE

Abstract

This study explores how environmental regulations, circular economy principles, and digital green innovation synergistically improve ecological performance by enhancing sustainability integration within Saudi organizations. Conceptually rooted in the Resource-Based View and Institutional Theory, the model was empirically tested with 418 valid response data sets collected from managers and sustainability officers in different sectors of Saudi Arabia. The hypothesized model was tested using PLS-SEM. The results testified that the legal environment, circular economy principles, and digital green innovation positively fuel sustainability integration, while the environment's performance was positively impacted. In addition, sustainability integration partially mediated the collaboration of the legal environment, circular economy, and digital green innovation, citing the importance of internal core sustainability. The study amplified the understanding of implemented regulations and the digital shift toward the sustainable performance of the environment while providing considerable guidance toward the environmental aspects of Saudi Vision 2030.