Circular Economy Practices and Operational Efficiency among Air Conditioning Manufacturers and Distributors in the Philippines: Basis for Strategic Green Technology

Margarette Ann M. Cunanan
htpps://orcid.org/0009-0002-5182-6913
cunanan.ann08@gmail.com
University of Perpetual Help System DALTA
Las Piñas, Manila, Philippines

DOI: https://doi.org/10.54476/apjaet/66079

                                                                                          Abstract

This study examined the relationship between circular economy practices and operational efficiency among air conditioning manufacturers and distributors in the Philippines as a basis for developing a Strategic Green Technology Framework. Using a descriptive-correlational research design, data were collected from 100 employees directly involved in operations and sustainability-related functions. Circular economy practices were assessed in terms of sustainable design and resource efficiency, waste reduction and reverse logistics, green technology adoption, and organizational and policy support, while operational efficiency was measured through cost control, productivity, material utilization, and supply chain performance. Results revealed that respondents perceived a high level of implementation of circular economy practices and a high level of operational efficiency across all dimensions. Pearson correlation analysis indicated a significant positive relationship between circular economy practices and operational efficiency, suggesting that sustainability-oriented practices function as strategic organizational capabilities that enhance operational outcomes. Among the dimensions, waste reduction and reverse logistics demonstrated the strongest association with operational efficiency. Based on the findings, a Strategic Green Technology Framework anchored on four interrelated pillars was proposed to guide firms in integrating circular economy principles into their operational strategies. The study contributes empirical evidence from a developing economy context and offers practical insights for managers and policymakers seeking to align sustainability initiatives with operational performance.

Keywords: circular economy, operational efficiency, green technology, air conditioning industry, Philippines

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