Sustainable Marketing Orientation as a Driver of Value Creation: The Role of Circular Economy Practices

The transition toward Circular Economy (CE) models has become a central challenge for organizations seeking to enhance sustainability performance and long-term value creation. While existing research has extensively examined technological, regulatory, and operational drivers of CE adoption, limited attention has been paid to the internal organizational orientations that enable firms to implement circular practices in a coherent and sustained manner. Addressing this gap, this study examines the role of Sustainable Marketing Orientation (SMO) as an organizational driver of CE adoption. Drawing on survey data collected from 368 micro-, small-, and medium-sized enterprises operating in environmentally relevant sectors in an emerging economy context, the study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to test a hierarchical model in which SMO is conceptualized as a multidimensional organizational orientation composed of ethical capabilities, social commitment, and strategic integration. The results demonstrate that SMO significantly and positively influences CE adoption, explaining 41.5% of the variance. Among the dimensions of SMO, social commitment and strategic integration emerge as particularly influential in supporting circular economy practices. The findings contribute to the literature by empirically validating SMO as a higher-order organizational orientation and by identifying it as a key antecedent of CE adoption. Beyond theoretical contributions, the study offers practical insights for managers and policymakers, highlighting the importance of integrating sustainability into organizational strategy, stakeholder relationships, and performance measurement systems to facilitate circular economy transitions. Overall, the results position sustainable marketing orientation as a critical organizational mechanism supporting systemic sustainability and socio-economic transitions.