Stakeholder-Based Mechanisms for Enhancing Green Competitiveness in The Context of the Circular Economy

The intensification of global environmental challenges, including climate change, resource depletion, and biodiversity loss, necessitates the transition toward sustainable development models. In this context, the circular economy has emerged as a key paradigm for improving resource efficiency, reducing environmental pressure, and ensuring long-term economic growth. At the same time, the concept of green competitiveness has gained increasing importance as an integrative framework that combines environmental performance, innovation capacity, and institutional development. However, existing studies mainly focus on technological and economic determinants of green competitiveness, while the role of stakeholder interaction remains insufficiently conceptualised. The aim of this study is to develop a stakeholder-based methodological framework to enhance green competitiveness in the context of the circular economy, with a particular focus on the mechanisms by which stakeholder interactions influence sustainability outcomes. The proposed framework conceptualises stakeholders as active drivers of transformation and introduces a multi-level mechanism that includes stakeholder roles, interaction processes, and system-level outcomes. A key contribution of the study is the development of the Stakeholder Interaction Index (SII), which enables the quantitative assessment of the intensity and quality of stakeholder interactions, including coordination, collaboration, information exchange, co-creation, and participation. The index provides a measurable tool for integrating stakeholder dynamics into sustainability and competitiveness assessment models. The results demonstrate that effective stakeholder interaction significantly enhances environmental performance, innovation capacity, and economic resilience, thereby strengthening green competitiveness. At the same time, the study highlights the non-linear nature of the relationship between stakeholder interaction and sustainability outcomes, emphasising the importance of governance mechanisms and stakeholder alignment. The findings contribute to integrating stakeholder theory, circular economy principles, and green competitiveness frameworks into a unified analytical model and offer practical implications for policymakers and businesses seeking to achieve sustainable development.