Toward a Circular Path: Integrating Knowledge, Open Innovation, Green HRM, Entrepreneurship, and Digital Orientation in Chinese Fashion Industry

The present study examines the nexus between sustainable digital entrepreneurship, open innovation, green human resource, and circular economy in the context of the Chinese fashion sector. Since fashion brands delve into the adoption of digital technologies, the opportunity to harness such innovation has become more pronounced in order to achieve sustainability. Circular economy, in recent years, has garnered the attention of scholars as they view the concept as a strategic mechanism which helps in achieving sustainable goals through cleaner production. Thus, the research assumes that digital entrepreneurship under the disguise of sustainable principles nurtures open innovation and green HRM practices, shaping circular economic goals. The study also scrutinizes the mediating role of knowledge sharing and digital orientations as they are proven critical enablers of sustainable principles. The researcher has gathered data from the full‐time employees in the HRM department of fashion companies in China; these employees included departmental heads, line managers, managers, and employees having good knowledge regarding the observed variables of the study. By employing PLS‐SEM, the findings of the study reveal that there is a significant positive association of circular economy with the firm's open innovation and green HRM practices, while it is not related to sustainable digital entrepreneurship. In light of the findings, the study offers a significant contribution by introducing a comprehensive model that fosters sustainability initiatives. However, the study is limited to the Chinese fashion industry, so its findings cannot be generalized. Therefore, future researchers are recommended to study some other industries as well.