Green Mindfulness and Circular Economy Behavior as Drivers of Environmental Performance in SMEs

Abstract This current research examines the effect of green mindfulness and circular economy behaviour on the environmental performance of small and medium-sized manufacturing enterprises (SMEs). Data was gathered from 256 employees across 27 SMEs in Jammu region and analysed through Structural Equation Modelling (SEM) using Smart PLS. The findings indicate a significant positive relationship between green mindfulness and the adoption of circular economy behaviour, which subsequently improve environmental performance. Increased awareness among employees regarding environmental impacts and their proactive engagement in sustainable practices contributes to enhanced resource efficiency, waste minimisation and long-term ecological sustainability. These insights offer important implications for SME managers, highlighting the necessity of cultivating a culture of green mindfulness to meet environmental objectives and gain a competitive edge in the increasingly sustainable landscape.