Cultural Drivers of Circular Economy Performance: Examining When Green Supply Chain Integration and Organizational Culture Become Necessary

Abstract

Achieving circular economy performance (CEP) in resource‐constrained economies depends on the combined influence of organisational culture and green supply chain integration (GSCI). Although both have received increasing attention in the sustainability literature, little is known about how different organisational culture types interact with GSCI to enhance CEP. This study addresses this gap using the competing values framework (CVF) and analysing survey data collected from 311 managers of manufacturing SMEs. Partial least squares structural equation modelling (PLS‐SEM) was used to examine the hypothesized relationships; necessary condition analysis (NCA) was employed to identify conditions that are essential for achieving CEP; and importance‐performance map analysis (IPMA) was conducted to identify improvement priorities. The findings reveal that apart from rational culture, the three cultural dimensions (developmental, group and hierarchical) significantly enhance CEP, with the model explaining 54.7% of CEP variance. Green internal integration and green customer integration also have significant positive effects on CEP, whereas green supplier integration does not. Furthermore, green internal integration significantly mediates the relationships between all four organisational culture types and CEP. The NCA results further identify developmental culture (d = 0.275), rational culture (d = 0.191), hierarchical culture (d = 0.160) and green internal integration (d = 0.146) as necessary conditions for achieving CEP. This study extends the application of the CVF to CE contexts in Sub‐Saharan Africa where empirical evidence is scarce. The study provides both theoretical understanding and practical guidance for improving circular economy performance among manufacturing SMEs.