Circular Economy Practices, Green Value Co-Creation, and Sustainable Supply Chain Integration: The Moderating Role of Digital Maturity

This research investigates how CE initiatives, interpreted as manifestations of corporate social responsibility, shape green value co-creation, green collaborative culture, and green supply chain integration across both supplier and customer contexts. The proposed conceptual framework also explores the possibility that digital maturity can moderate these interrelations, based on signaling theory. Empirical results, obtained through PLS SEM and NCA on a data sample of 493 suppliers and customers, confirm that CE practices have a significant positive impact on green value co-creation, which, in turn, influences the green collaborative behavior of the actors and the integration of the supply chain. The moderating role of digital maturity is reinforced in the linkages between green value co-creation, collaboration, and integration. Thereby, their effectiveness is strengthened. This study adds to the literature by proposing an integrative relationship between CE practices and outcomes within the supply chain dyad, offering a rare empirical study of relationships between suppliers and organizations in an emerging economy, and shedding light on the boundary condition of digital maturity within these relationships. The results have significant implications for managers seeking to maximize their sustainability performance through circular practices and digital capabilities.