Upcycling or recycling? Examining the impact of circular production level on consumer engagement in companies’ circular take-back programs

Purpose As companies increasingly adopt circular production approaches to align with circular economy principles, understanding consumer responses to these practices is essential. This study aims to investigate how circular production level (upcycling vs. recycling) influences consumers’ intention to engage in company-led circular take-back programs. Design/methodology/approach Two online scenario-based experiments were conducted in the United States and China to manipulate the level of circular production. Consumer intention to engage in companies’ circular take-back programs serves as the dependent variable, with perceived company sustainability competence and a sense of admiration functioning as serial mediators. Findings Data from 846 participants demonstrate that consumers are more willing to engage in companies’ circular take-back programs when informed that the companies adopt an upcycling (versus recycling) approach to produce circular products. This occurs because consumers perceive these companies as more competent in sustainability, which fosters higher admiration toward these companies. Practical implications These findings provide practical implications for companies seeking to implement circular production practices and build a sustainability-focused competence image. Originality/value This study advances the literature on corporate social responsibility disclosure by providing a more fine-grained perspective on this construct, contrasting with its traditional treatment as a holistic and undifferentiated construct in prior studies. Additionally, it contributes to the literature on consumers’ sustainable product disposal by identifying perceived company sustainability competence and admiration as key drivers.