This study aims to explore two underexamined areas in Digital Circular Economy (DCE) literature: the synergy between human resource (HR) practices and social performance and their impact on fostering DCE adoption in developing countries. This novel approach integrates HR practices, organisational readiness and social performance dimensions to address barriers in DCE implementation within resource-constrained manufacturing sectors.
Using Partial Least Squares Structural Equation Modelling (PLS-SEM) with a cross-sectional approach, data from 343 HR managers and senior professionals in developing economies, the study investigates how HR practices and social performance collectively influence organisational readiness and DCE adoption.
The study identifies training, performance-based incentives and CSR as critical drivers of organisational readiness, enhancing trust and collaboration for DCE adoption. Organisational readiness, including leadership commitment and digital skills, mediates the relationship between HR practices, social performance and DCE adoption, offering a novel framework for sustainable transformation in resource-constrained contexts.
The study is confined to manufacturing firms in developing economies and hence does not have any generality to other sectors or in other regions. Insights from future research on the qualitative aspects of and longitudinal impacts of HR practices on DCE adoption across diverse industries and cultures are required.
This study uniquely integrates HR practices, social performance and organisational readiness, addressing significant research gaps by focusing on the manufacturing sector in developing countries. The findings provide actionable insights for aligning workforce strategies with sustainability goals and fostering innovation in DCE adoption.
