A behavioural risk perspective to plastic waste management: insights from Nigerian SMEs

A transition to a Circular Economy (CE) is intrinsically connected to the perceived risk of moving away from the status quo of the extract-use-discard model. This study examines how small and medium enterprises (SMEs) perceive and respond the multi-dimensional risk from plastic waste mismanagement (PWM). Such risk is approximated and analysed using two different behaviour theories, the Expected Utility Theory and Protection Motivation Theory in a survey amongst 242 managers in Nigerian SMEs examining the endogenous relationship between perceived impact of PWM and perceived effectiveness in addressing it. Results indicate that plastic waste is considered as low to medium risk in the country. Perceived effectiveness to deal with PWM is correlated with perceived impact from PWM, confirming the endogenous relationship. As Nigerian firms seem to prefer low-cost and low-commitment actions to deal with PWM such as investing in local packaging materials, focusing on promotional and educational campaigns might move the needle in adopting CE practices.