Circular economy, customer citizenship behaviour and firm performance: Some empirical evidence

Abstract

Abstract Determining the motivations behind adopting a circular economy (CE) and its effect on firm performance (FP) from the perspective of manufacturing firms has become essential for practitioners and scholars. Nonetheless, there exists a substantial unexplored gap regarding how customer citizenship behaviour (CCB) motivates and influences the adoption of CE practices and FP of manufacturing firms in the context of developing countries. Therefore, using insights from the social exchange theory, this study explores the framework through which CCB influences the relationship between CE practices and FP. The study employed a quantitative approach and partial least square structural equation modelling technique to analyse data and interpretations due to its appropriateness for predictive research models. Data was collected using a survey research strategy. The findings revealed that CCB mediates and moderates the relationship between CE practices and FP. The study highlights the significance of CCB in making CE initiatives mandatory for organisational growth while guiding managers, policymakers and scholars.