Universities as Living Labs for Circular Economy Entrepreneurship in the GCC

Abstract

Universities are increasingly expected to contribute to sustainability transitions while fostering innovation and entrepreneurship. However, green campus sustainability practices are often implemented as operational initiatives, with limited integration into entrepreneurship education and student venture development. Drawing on the entrepreneurial university perspective, experiential learning theory, and the living lab approach, this study conceptualises universities as living labs for circular economy entrepreneurship and empirically examines the mechanisms through which campus sustainability practices translate into entrepreneurial outcomes. The study proposes and tests a sequential model in which students’ perceptions of green campus sustainability practices influence experiential learning engagement, which in turn enhances circular economy competencies and subsequently leads to entrepreneurial intention and early entrepreneurial behaviour. A quantitative, survey-based research design was adopted, using data collected from 313 students across multiple campuses of a higher education institution in the GCC context. Partial least squares structural equation modelling (PLS-SEM) was employed to analyse the data. The results provide strong support for the proposed model. Green campus sustainability practices significantly enhance experiential learning engagement, which in turn drives the development of circular economy competencies. These competencies were found to have a significant positive effect on both entrepreneurial intention and early entrepreneurial behaviour. Furthermore, the findings confirm a sequential mediation mechanism, indicating that the influence of sustainability practices on entrepreneurial outcomes operates through structured learning and competency development processes. This study contributes to the literature in three ways. First, it extends the entrepreneurial university and sustainability education literature by empirically linking green campus practices to entrepreneurship outcomes through a living lab logic. Second, it advances circular economy entrepreneurship research by highlighting the mediating role of experiential learning and competency development. Third, it offers practical insights for higher education leaders and policymakers on how campus sustainability initiatives can be strategically leveraged to foster innovation, entrepreneurship education, and early venture creation in emerging and transition economies.