Unveiling the impact of revenue and inventory on circular economy using profitability and competition as moderators in Indian automobile firms

This study aims to determine the impact of revenue generation and inventory management on the circular economy (CE). Hence, this study delves into the financial implications of circular strategies, including revenue opportunities and inventory. It also aims at the profit and competitive gains enjoyed by their associations. This research utilizes secondary data of 31 automobile firms in India for the period 2012–2023. Quantile panel data econometrics were pursued in this study. Both revenue and inventory adversely influence scrape sales at lower quantiles, whereas they are insignificant for higher quantiles. Profitability and competition positively moderate the revenue-scrap sales association and inventory-scrap sales associations. These results underscore India's need to implement stringent regulations for sustainable production, effective waste management strategies, and transparent reporting of environmentally conscious practices. This indicates that both revenue and inventory are critical to CE adoption. This study augments the existing body of knowledge through its novel findings on CE.