The global water crisis and the urgent need to transition toward regenerative economic models position the circular water economy as a strategic pathway for achieving Sustainable Development Goal 6. While technical feasibility and engineering performance of water reuse technologies have been extensively documented, the socio-organisational and institutional factors conditioning their adoption by industrial and urban entities remain poorly understood. This study addresses this knowledge gap by examining how organisational resources, institutional frameworks, and psychosocial factors are associated with implementation outcomes of circular water economy practices. Using partial least squares structural equation modelling (PLS-SEMs) on survey data from 150 organisational decision-makers across three Peruvian regions (Lima, Trujillo, and Cajamarca), we tested a multidimensional theoretical model integrating resource-based view, theory of planned behaviour, and institutional theory. Results reveal that external regulatory pressure (β = 0.345, p < 0.001), institutional framework quality (β = 0.287, p < 0.001), organisational resource availability (β = 0.273, p = 0.001), and pro-environmental organisational culture (β = 0.255, p = 0.013) show significant positive associations with technology implementation. Counterintuitively, individual attitudes exhibited a negative association (β = −0.350, p < 0.001), suggesting that favourable perceptions disconnected from organisational capacity may generate resistance rather than facilitate adoption. Implementation fully mediates all relationships with performance outcomes (R2 = 82.3%), confirming its role as a critical bottleneck in the adoption process. These findings provide empirical evidence for prioritising institutional reforms and organisational capacity-building over awareness campaigns in water reuse promotion strategies, particularly in emerging economy contexts characterised by regulatory fragmentation and limited technical capabilities.
García et al. (Sat,) studied this question.