Circular supply chain practices and corporate sustainability performance: do ethical supply chain leadership and environmental orientation make a difference?

Abstract

Purpose

This study draws insight from the leader-member exchange theory to examine the link between supply chain ethical leadership and circular supply chain practices. This study further draws on the contingent theory to explore the interactive effect of environmental orientation and circular supply chain practices on corporate sustainability performance.

Design/methodology/approach

This study uses a quantitative research approach where partial least square structural equation modelling (SMART PLS) is used to analyse survey data gathered from 122 managers of small and medium enterprises in Ghana.

Findings

This study reports that there is a significant positive relationship between ethical supply chain leadership and circular supply chain practices. The findings further reveal that internal environmental orientation and external environmental orientation moderate the relationship between circular supply chain practices and corporate sustainability performance.

Originality/value

This study sheds light on ethical supply chain leadership's influence on circular supply chain practices. The study also offers an empirical argument to explain contradictory relationships between circular supply chain practices and corporate sustainability performance by applying the contingency roles of internal and external environmental orientation.

Citation

Agyabeng-Mensah, Y., Baah, C., Afum, E. and Kumi, C.A. (2023), "Circular supply chain practices and corporate sustainability performance: do ethical supply chain leadership and environmental orientation make a difference?", Journal of Manufacturing Technology Management, Vol. 34 No. 2, pp. 213-233. https://doi.org/10.1108/JMTM-08-2022-0296