Appropriate Technology as a Mediator between Knowledge Integration Capability and Circular Economy: Evidence from Resource-Constrained Wood-Processing SMEs in Thailand
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This study presents an integrated framework combining the knowledge-based view (KBV) and resource mobilization theory, positioning Appropriate Technology (ATech) as a mediating mechanism that explains how Knowledge Integration Capability (KIC) translates into Circular Economy (CE) outcomes. Unlike prior studies emphasizing high-tech and capital-intensive solutions, this research demonstrates how local knowledge integration enables sustainability through cost-effective ATech adoption in resource-constrained SMEs. Using PLS-SEM with bootstrapping, this study analyzed data from an attempted census of wood-processing SMEs in Surat Thani, Thailand (n = 82), collected in early 2024. The results confirmed that measurement validity, reliability, and model fit met accepted thresholds. The findings show that (1) KIC significantly enhances ATech adoption via effective integration of internal and external knowledge; (2) ATech positively influences CE through sustainable design, collaborative development, and local resource use; and (3) partial mediation occurs, as KIC affects CE both directly and indirectly through ATech. The study extends the KIC concept beyond competitive advantage to sustainability and shows that SMEs can leverage KIC to identify fit-for-purpose technologies, while policymakers can promote capability-building and ATech access programs.
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