Circular Economy and Organizational Citizenship Behaviors: Exploring the Mediating Impact of Employee Socially Responsible Behaviors and the Moderating Influence of Social Value Orientation

Abstract

ABSTRACT This paper explores the under examined relationship between circular economy ( CE ) practices and organizational citizenship behaviors (OCBs) in the service industry, analyzing the mediating role of employee socially responsible behaviors (ESRBs) and the moderating influence of social value orientation (SVO). While CE has gained attention in the manufacturing industry, its application in the service industry, particularly in the hospitality and healthcare sector, remains underexplored, predominantly in developing economies. Moreover, the mechanisms through which CE practices influence employee behaviors are not well understood. To address these gaps, we draw on social exchange theory to hypothesize that CE practices positively influence OCBs, mediated by ESRBs, with SVO moderating these relationships. Data were collected from 315 employees from the hospitality and the healthcare sector in Ghana using a simple random sampling. Structural equation modeling (AMOS 23.0) was employed to test the hypotheses. From the findings, CE practices positively influence OCBs ( β = 0.196; p value < 0.01) with ESRBs mediating the relationship between CE and OCBs ( β = 0.139; 95% CI = [0.058, 0.215]). SVO also moderates these ( β = 0.041; p value < 0.05). This study is novel in introducing ESRBs as a mediator between CE and OCBs, revealing how employee behavior shifts through sustainability efforts. Practically, it guides hospitality and healthcare managers to design CE initiatives that encourage employee participation in recycling, energy‐saving, and resource‐efficient practices that foster OCBs.