Abstract: Comprehensive understanding of mechanisms and outcomes of circular economy implementation is critically important for companies in their environmental and operational practices. Based on data collected from 291 Chinese manufacturing companies, structure equation modeling (SEM) has been employed as the major research method to test a hypothesized theoretical model. Analysis results suggest that the mechanism of circular economy implementation includes three dimensions:reduction, reuse, and recycle; companies' circular economy implementation positively impacts their environmental and business performances; and companies' environmental and business excellencies can be complimentarily achieved.

Key words: circular economy implementation, environmental performance, business performance