Threat or Opportunity? Market Turbulence As a Catalyst For Green Innovation-Driven Circular Economy Adoption in High-Tech Sectors

HRMARS - The relationship between green innovation and circular economy adoption has attracted considerable scholarly attention, yet the role of market turbulence in shaping this relationship remains theoretically contested. Existing research presents two opposing views: one sees market turbulence as a threat that constrains sustainability investments, while the other sees it as an opportunity that stimulates innovation and differentiation. This perspective paper argues that both views are incomplete. A more nuanced argument is advanced: the direction of market turbulence's moderating effect depends on the type of green innovation. Specifically, market turbulence amplifies the positive effect of green product innovation on circular economy adoption (opportunity perspective) but dampens the positive effect of green process innovation on circular economy adoption (threat perspective). This type of dependent moderation resolves the apparent contradiction in prior research and offers a more accurate account of when and how market turbulence matters. Drawing on a synthesis of 25 empirical studies published between 2020 and 2026, this paper develops an integrated perspective, presents five illustrative tables and two conceptual figures, and outlines theoretical and practical implications. The central argument challenges the one-size-fits-all approach to market turbulence and calls for more fine-grained theorizing in green innovation and circular economy research.