The Role of Circular Economy Practices between Green Supply Chain Management and Green Service Behavior: Evidence from an Emerging Nation

Circular economy (CE) practices play a significant role in green supply chain management (GSCM) and green service behavior (GSB), that are increasingly recognized as pivotal in fostering sustainable business operations, particularly within the banking sector of emerging economies like Bangladesh. This study investigates the mediating role of CE between the influence of GSCM on green service behaviors among employees in the commercial banking industry, focusing on both in-role and extra-role behaviors. A sample of 395 frontline employees from various private commercial banking institutions in Bangladesh, participated in face-to-face surveys. Structural Equation Modeling (SEM) was employed to analyze data, confirming robust measurement and structural models. The results demonstrate significant positive effects of GSCM on green service behaviors, both in-role and extra-role, mediated by CE. Specifically, CE enhances the relationship between GSCM initiatives and voluntary environmentally friendly actions among bank employees. These findings contribute to a deeper understanding of how sustainable practices can be effectively integrated into organizational strategies to promote green behaviors, offering practical insights for enhancing environmental sustainability in the banking sector.