Circular Economy Entrepreneurship as a Pillar of Circular Supply Chain Sustainability: The Roles of Circular Economy Capability and Net Zero Policy

The rising global environmental challenges and resource depletion have intensified the need for the reevaluation of traditional supply chain practices. Although much research attention has been given to the circular economy (CE), not much is known about how circular economy entrepreneurship impacts circular supply chain sustainability. Drawing on the practice-based view and using 447 valid cross-sectional data collected through questionnaire survey from supply chain managers of Nigerian manufacturing firms, this examines the influence of circular economy entrepreneurship on circular supply chain sustainability. The mediation role of circular economy capability and the moderation role of net-zero policy were further examined. The proposed relationships were tested using the PROCESS macro. The results show that circular economy entrepreneurship is positively related to circular supply chain sustainability and circular supply chain capability. Circular economy capability is positively related to circular supply chain sustainability and mediates the relationship between circular economy entrepreneurship and circular supply chain sustainability. Net zero moderates circular economy entrepreneurship-circular economy capability link, with the positive relationship stronger among firms high on compliance with zero policy than among firms low on net-zero policy. The indirect link of circular economy entrepreneurship on circular supply chain sustainability through circular economy capability is stronger among firms that are high on compliance with net-zero policy than among firms that are low on net-zero policy. The contributions of this study advance the CE literature, offering new insights that can serve as a reliable reference and provide practical guidance for decision-makers in fostering a sustainable circular supply chain, particularly in emerging economies.