Exploring Relationship Between Circular Economy and Operational Efficiency Sarah Anistia
Universitas Terbuka, Indonesia
Abstract
Micro, Small, and Medium Enterprises (MSMEs) is the backbone of the economy particularly in Jakarta, Indonesia. However, this sector remains a significant contributor to waste due to low resource efficiency. In a huge population urban such as Jakarta, the transition from linear ^take-make-dispose^ model toward a circular economy is hindered by spatial planning complexities, limited financing, and technological barriers. Although digitalization and ecological innovation are recognized as catalysts for sustainability, regarding their combined impact on MSMEs operational efficiency remains scarce. This study aims to analyses how circular economy practices in Innovation, Digitalization Strategies, and Sustainable Supply Chain Management influence the Operational Efficiency of MSMEs in Jakarta. In this research, a quantitative method was employed by distributing surveys to 100 MSMEs owners and managers across five administrative cities of Jakarta. The questionnaire measured the level of adoption of circular practices and efficiency metrics (cost, waste, and energy reduction) using a Likert scale. Data were analysed using Multiple Linear Regression Analysis. The findings indicate that the synergy between digitalization and innovation a positive and significant effect on operational efficiency. However, this study demonstrates that MSMEs in Jakarta play a strategic role in the circular transition but require an integrated support system.
Keywords: MSMEs in Jakarta, Circular Economy, Operational Efficiency, Digitalization, Innovation
Topic: Responsible Digital Entrepreneurship: Fostering Sustainable Business Ecosystems through Innovation and Ethical Governance (Digital Entrepreneurship- Sustainable Ecosystems- Business Innovation)
