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This study investigates the transformative impact of sustainability, circularity, and closed-loop systems on long-term competitive advantage, integrating Total Quality Management (TQM) and Business Excellence (BE) principles within the Resource-Based View (RBV) framework, augmented by machine learning-driven sustainability indices. By embedding TQM’s continuous improvement and customer-centric methodologies alongside BE’s strategic focus on stakeholder value and performance excellence, firms develop unique, non-imitable resources – such as sustainable brand equity, circular supply chain capabilities, and enhanced customer loyalty driven by environmental stewardship. We employ a predictive model combining multivariate regression and machine learning algorithms to assess the interplay between green management practices (emphasizing energy efficiency, circular waste management, and closed-loop resource flows) and business performance, drawing on global sustainability indices, corporate disclosures, and operational data. Results reveal that integrating TQM’s process rigor and BE’s holistic excellence frameworks into sustainability strategies significantly enhances cost efficiency (22% higher savings via waste-to-value conversion), strengthens market differentiation through closed-loop product lifecycles (27% higher customer retention), and aligns with consumer and regulatory demands for regenerative business models. This research advances strategic management scholarship by empirically linking TQM and BE-driven circularity to RBV’s resource heterogeneity, offering data-driven insights for achieving competitive resilience and operational excellence through sustainability transitions.
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