Corporate Governance Practices and Circular Supply Chain Management Relationship: Eco‐Innovation Leadership and the Perceived Urgency Paradox Based on a Three‐Way Interaction Model

Abstract

ABSTRACT The accelerating decline in global circularity and fragmented implementation of Circular Supply Chain Management (CIRSCM), particularly in developing economies, highlights the necessity for enhanced behavioural and institutional drivers. This study examines the influence of corporate governance (CORPGOV) on CIRSCM, with eco‐innovation leadership (EIL) serving as both a mediating and moderating mechanism and perceived urgency for circularity acting as a boundary condition. Utilising an integrative framework, the Stewardship–Behavioural Alignment Theory (SBAT), this research integrates the Stewardship Theory and the Theory of Planned Behaviour to elucidate how governance systems are translated into circular outcomes through leadership behaviour and contextual urgency. Data were collected from 381 manufacturing firms in Ghana through a structured survey targeting top and mid‐level managers. A hybrid analytical approach employing structural equation modelling (SEM) and PROCESS macro regression was used to test the hypothesised relationships. The findings confirm a positive and significant relationship between CORPGOV and CIRSCM, establishing that EIL partially mediates this link. Furthermore, EIL significantly moderates the CORPGOV–CIRSCM relationship, and this moderating effect is amplified under high levels of perceived urgency. More importantly, financial slack should not be viewed merely as excess capacity; rather, it should function as a strategic buffer and resource reserve that enables firms operating under financial constraints to mitigate risk and pursue circular objectives. Industry‐specific analyses reveal heterogeneous effects, with plastic firms demonstrating stronger governance–circularity alignment, while wood‐processing firms exhibit negative moderation, highlighting sectoral divergence in circular readiness. Managerial experience was found to be non‐significant, indicating that experience rooted in legacy linear models may not facilitate circular transition. This study contributes to the theory by conceptualising governance as a behavioural enabler rather than as a structural determinant.