The role of organisational citizenship behaviour and green human resource management in the relationship between circular economy practices and firm performance

Abstract

Purpose The benefits of circular economy (CE) practices to firms cannot be overemphasised in business environments and have thus attracted research attention lately. Nevertheless, there exist considerable unexplored gaps regarding how green human resource management (GHRM) and organisational citizenship behaviour (OCB) partially or jointly influence the relationship between CE practices and firm performance (FP) in developing economies. Design/methodology/approach Using planned behaviour and natural resource-based view (NRBV) theories, this study explores the roles of GHRM and OCB in the relationship between CE practices and FP [i.e. environmental performance (EP) and financial performance (FnP)]. The study employed a quantitative (survey) approach and specifically using partial least squares-structural equation modelling (PLS-SEM) technique to analyse data randomly collected from 196 manufacturing firms in Ghana. Findings The study found that GHRM moderates the relationships between CE practices and OCB. Additionally, OCB mediates the relationship between CE practices and EP but does not mediate the relationship between CE practices and FnP. Originality/value The study provides empirical evidence and highlights the significance of GRHM and OCB in driving successful CE initiatives in organisations, leading to better FP. The findings of this study provide useful insights to support green operations in firms and policy development, particularly in developing economy environments.