Joint effect of cost information usage and environmental practices in circular economy context
Keywords:
cost usage, environmental practices, circular economyAbstract
Grounded in decision-making theory and sustainability-focused design principles, this research addresses a critical gap in understanding how financial data precision and sustainable practices together influence environmentally conscious design decisions. This study examines the combined effects of cost information precision and environmental innovation practices on circular product design within new product development (NPD) settings. Utilizing a 2x2 between-subjects factorial design, we conducted a laboratory experiment. Results from a two-way ANOVA revealed no significant main effects for cost information precision or environmental innovation practices independently; however, a marginally significant interaction effect indicated that participants exposed to both precise cost information and environmental practices achieved higher circularity scores than those in other conditions. This interaction suggests that while cost precision or sustainable training alone may not significantly impact circular design choices, their combination has the potential to drive stronger alignment with circular economy goals. These findings align with theories suggesting that integrated information and practice approaches better support complex, sustainable decision-making processes. Implications for industry suggest that organizations aiming to promote sustainable design should consider the synergistic role of precise financial data and environmental innovation training to effectively encourage circular product development. Limitations include the use of student participants as design proxies and a laboratory setting, which may affect generalizability to professional design contexts. Future research should extend these findings by examining other designer attributes, such as personal sustainability values, and by validating these insights with professional designers in real-world NPD environments. This research contributes to sustainable design literature by offering insights into how combined cost management and environmental training can encourage circularity in product development.
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