Does circular economy knowledge matter in sustainable service provision? A moderation analysis

Research has shown that achieving sustainable advantage requires building organisational competencies and dynamic capabilities. It has therefore become imperative to extend the understanding of service research by exploring the antecedents of sustainable services. Drawing on organisational-level variables, this study examines the effects of institutional factors (IF), contextual factors (CF), and strategic factors (SF) on the adoption of circular economy (CE) within service organisations and their impact on sustainable service provision. The paper further examines how circular economy knowledge moderates the impact of organisational factors on CE practice adoption. Using 'Ghana's service sector as a case study, 493 top-management employees from 267 service organisations were surveyed using simple random sampling. The study found that organisational factors lay the foundation for CE practice adoption, and CE knowledge enhances the relationship. Additionally, CE adoption contributes to sustainable service provision via three channels: (1) service longevity, (2) service sharing, and (3) service ownership. The results confirm CE indicators are relevant for predicting sustainable service outcomes and shed light on managerial implications.