In the rapidly evolving landscape of environmental sustainability, the intersection of environmental law and business practices has emerged as a critical research area. A recent pivotal study by J. Mouawad titled “Environmental law, green entrepreneurial orientation, and circular business models: a systematic literature review,” published in Discover Sustainability, delves into this significant relationship, exploring how legal frameworks influence entrepreneurial ventures aimed at promoting sustainability. The findings of this research provide crucial insights into how environmental regulations can drive innovation and establish a pathway toward sustainable business models.
This systematic literature review synthesizes extant research, emphasizing the burgeoning field of green entrepreneurial orientation. As global awareness regarding ecological issues escalates, there is an increasing need for businesses to adopt practices that not only comply with existing environmental regulations but also proactively contribute to sustainable development. Mouawad’s work examines how an entrepreneur’s green orientation is not merely an ethical stance but a strategic approach that aligns with contemporary market demands.
Central to Mouawad’s exploration is the concept of circular business models, which stand in stark contrast to traditional linear models of production and consumption. The linear model—characterized by a ‘take-make-dispose’ approach—has proved unsustainable, leading to resource depletion and environmental degradation. In contrast, circular models focus on resource efficiency, waste reduction, and lifecycle management, making them a preferable choice for businesses aiming to achieve sustainability while remaining competitive.
The review highlights several key areas where environmental law intersects with entrepreneurial practices. Firstly, it underscores how stringent regulations can incentivize businesses to innovate. By requiring companies to adhere to specific environmental standards, laws can stimulate the development of new technologies and practices that promote sustainability. This interplay of regulation and innovation is essential for fostering a culture of responsibility among businesses, which is vital for the larger goal of sustainable development.
Moreover, Mouawad identifies barriers that hinder the effective implementation of green practices within entrepreneurial settings. Despite the growing body of supportive legislation, many businesses still struggle with the transition to more sustainable practices. These challenges can be attributed to a variety of factors, including lack of awareness, insufficient support systems, and the complexities associated with overhauling established business models. By identifying these gaps, the research paves the way for targeted interventions that can help entrepreneurs bridge the divide between compliance and genuine environmental stewardship.
A compelling aspect of this research is its emphasis on the role of green entrepreneurial orientation in driving organizational change. Entrepreneurs who embrace a green orientation often view environmental challenges as opportunities for innovation rather than obstacles. This proactive stance catalyzes organizational learning, encouraging businesses to seek new ways of operating that align with sustainability goals. Such shifts not only benefit the environment but can also lead to enhanced brand loyalty and customer engagement, ultimately translating into economic advantages.
Mouawad’s systematic review also points to the critical role of collaboration among various stakeholders. Successful transition to circular business models often requires partnerships between entrepreneurs, governmental bodies, and non-profit organizations. These collaborations can facilitate knowledge transfer, resource sharing, and the co-creation of value that is essential for scaling green innovations across sectors. Thus, the review underscores the importance of building networks that empower businesses to thrive in an increasingly eco-conscious market.
One of the most striking revelations from the study is the need for businesses to integrate sustainability into their core strategies rather than treating it as an add-on. A paradigm shift in corporate thinking is necessary, where sustainability becomes embedded in the ethos of the organization. This requires a comprehensive understanding of the regulatory landscape and proactive strategies that align business goals with environmental objectives. The research serves as a clarion call for businesses to reevaluate their practices through the lens of sustainability, encouraging a shift from merely complying with regulations to becoming leaders in sustainability.
In conclusion, Mouawad’s systematic literature review provides a comprehensive analysis of how environmental law and green entrepreneurial orientation can harmonize to foster circular business models. The research not only highlights the challenges faced by entrepreneurs in navigating this landscape but also offers a roadmap for overcoming these hurdles through innovation, collaboration, and strategic alignment. As we move toward a more sustainable future, understanding the dynamics between law, entrepreneurship, and environmental stewardship will be indispensable.
The insights gleaned from this study hold significant implications for policymakers, educators, and entrepreneurs alike. By fostering an environment that nurtures green entrepreneurship and integrating sustainability into educational curricula, we can cultivate a new generation of innovators who are equipped to address the pressing environmental challenges of our time. Furthermore, as businesses continue to evolve, it becomes increasingly essential to monitor and adapt the legal frameworks that govern them, ensuring they effectively promote sustainable practices while facilitating economic growth.
Overall, Mouawad’s work signifies a critical step in reframing the discourse around environmental law and entrepreneurship. The intersection of these fields represents a unique opportunity to rethink how businesses operate in the context of sustainability, and the findings of this study serve as an essential reference point for ongoing conversations in the realm of sustainable business practices.
As we look to the future, integrating the principles of circular economy, fostering green entrepreneurial orientations, and adhering to robust environmental laws will not only be key to business success but will also play a pivotal role in combating the pressing issues of climate change and resource depletion. The collective efforts of scholars, entrepreneurs, and policymakers will determine the pace at which we can transition toward a more sustainable and environmentally friendly economy.
Subject of Research: The intersection of environmental law, green entrepreneurial orientation, and circular business models.
Article Title: Environmental law, green entrepreneurial orientation, and circular business models: a systematic literature review.
Article References:
Mouawad, J. Environmental law, green entrepreneurial orientation, and circular business models: a systematic literature review.
Discov Sustain 6, 1416 (2025). https://doi.org/10.1007/s43621-025-02282-7
Image Credits: AI Generated
DOI: https://doi.org/10.1007/s43621-025-02282-7
Keywords: Environmental law, green entrepreneurship, circular business models, sustainability, innovation.
