article · Business Strategy and the Environment
ABSTRACT Despite the growing discourse on strategic alliances and circular economy practices, there is limited insight into the mechanisms and conditions under which green alliance management capabilities generate enhanced circular economy outcomes. To address this gap, we drew on resource orchestration and contingency theories to investigate the influence of green alliance management capabilities on circular economy adoption and circular target performance through green collaborative practices under varying conditions of eco‐innovation leadership. Data were collected from 312 managers of manufacturing enterprises in Ghana. The data were analyzed using structural equation modeling, necessary condition analysis, and importance‐performance map analysis. The results indicate that green alliance management capabilities positively influence green collaborative practices, which, in turn, significantly affect both circular economy adoption and circular target performance. Green collaborative practices mediate the relationships between green alliance management capabilities and both circular economy adoption and circular target performance. However, eco‐innovation leadership does not significantly moderate the relationship between circular economy adoption and circular target performance. Using the NCA, we found green alliance management capabilities and circular economy adoption as necessary conditions for enhanced circular economy target performance, whereas green collaborative practices are just nice to have. Managers should prioritize the development of green alliance management capabilities to foster knowledge exchange, innovation, and long‐term value creation in circular economy contexts. Encouraging green collaborative practices enhances coordination, reduces costs, and strengthens circular economy implementation. This study offers valuable insights into the complex mechanisms through which organizations must achieve circular economy transformation.
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DOI: 10.1002/bse.70970
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