Circular business model deployment for sustainability performance

A serial mediation model

Bibliographic Data

ID22428002
AuthorsAlyaa Adel Ibrahim (Abu Dhabi University), Amit Kumar (0000-0003-4000-1780, Abu Dhabi University, corresponding author), Maha Shedid (Abu Dhabi University), Swarup Kumar Dutta (0000-0003-2519-9311, Indian Institute of Management Ranchi)
Year2026
Pages1-21
Publication date2026-06-15
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueSocial Responsibility Journal (JOURNAL)
Journal identifiersISSN: 1747-1117 • E-ISSN: 1758-857X
PublisherEmerald (PUBLISHER)
DOI10.1108/srj-02-2026-0126
OpenAlexW7164495149
LanguageEN
References cited83

Purpose Despite growing interest in circular business models as drivers of sustainability, empirical research has largely overlooked the intermediate organizational mechanisms through which circular business model deployment (CBMD) leads to sustainability performance (SP). Moreover, existing studies rarely examine serial mediation pathways that explain how organizational capabilities and practices sequentially enable sustainability outcomes. Accordingly, this study aims to investigate how CBMD enhances SP, with possible mediating effects of responsible leadership competency (RLC) and green orientation capability (GOC). Design/methodology/approach Building on the natural resource-based view (NRBV) and dynamic capabilities theory, the authors build and validate a conceptual model that tests both direct and indirect effects. Regression analysis was conducted using SPSS to examine survey responses from 238 managerial-level healthcare professionals across public and private sector organizations in the UAE. Findings The results show that CBMD positively influences SP both directly and indirectly through significant mediating effects of RLC and GOC, with a clear serial mediation pathway, where RLC plays a comparatively stronger mediating role than GOC in enhancing sustainability outcomes. Practical implications These findings extend the circular business model (CBM) – sustainability literature by unpacking the mechanisms through which CBMD translates into SP. Practically, organizations should prioritize leadership development and green capability building alongside circular strategies to ensure that sustainability initiatives translate into tangible performance outcomes. Originality/value To the best of the authors’ knowledge, this is the first study to offer an empirical insight on a set of relationships among CBMD, RLC, GOC and SP. The dual-theory approach is innovative and relevant in sustainability, leadership and organizational effectiveness research.

Business model · Conceptual model · Empirical research · Mediation · Software deployment · Sustainability · Sustainability organizations · Sustainable Business · Unpacking · Environmental Sustainability in Business · Sustainability in Higher Education · Sustainable Supply Chain Management

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