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Advancing Circular Economy Through Green Human Capital: the Critical Role of Sustainability

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  • Rashmi Kumari

    (Birla Institute of Technology)

  • Sujata Priyambada Dash

    (Birla Institute of Technology)

  • Rajeshwari Chatterjee

    (Birla Institute of Technology)

Abstract

To achieve a delicate equilibrium among environmental preservation, social well-being and economic progress, numerous countries worldwide have embraced the sustainable development model. Circular economy (CE) has shown to be one of the most successful strategies for advancing sustainable development. Because of the limited resources in every nation, companies need to use green practices to create a circular economy. Thus, this research aims to evaluate how Green Human Capital (GHC) contributes to the development of a CE and examines the mediating role of Sustainable Production (SP) in the relationship between green GHC and the CE. Data from 311 Indian service sector firms were analysed using PLS-SEM. Results indicate that GHC is a key driver of CE and positively influences SP, which, in turn, enhances CE adoption. We also incorporate a mixed-method approach by integrating fuzzy-set qualitative comparative analysis (fsQCA), providing fine-grained intervention insights that complement the quantitative findings from PLS-SEM. These insights not only contribute to existing theory but also offer valuable managerial implications for sustainable business practices.

Suggested Citation

  • Rashmi Kumari & Sujata Priyambada Dash & Rajeshwari Chatterjee, 2025. "Advancing Circular Economy Through Green Human Capital: the Critical Role of Sustainability," Circular Economy and Sustainability, Springer, vol. 5(4), pages 3281-3303, August.
    • Handle: RePEc:spr:circec:v:5:y:2025:i:4:d:10.1007_s43615-025-00583-7
    DOI: 10.1007/s43615-025-00583-7
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