This study examines how circular economy practices (CEP) influence sustainable performance (SP) in the hospitality industry. It explores the mediating role of green supply chain management (GSCM) and investigates how green organizational culture (GOC) and environmental dynamism (ED) moderate the CEP–SP relationship. Data were collected from 425 employees of four‐ and five‐star eco‐friendly hotels in Türkiye using judgmental sampling. Data were analyzed using PLS‐SEM to test the measurement and structural models, including mediation and moderation. CEP did not directly improve sustainable performance. However, GSCM fully mediated the CEP–SP relationship, indicating that circular practices must be operationalized through supply chain processes to create sustainability outcomes. Furthermore, GOC strengthened the positive effect of CEP on SP, highlighting the importance of supportive internal culture. ED also amplified the CEP–SP link, suggesting that dynamic external conditions enhance the effectiveness of circular initiatives.
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Saydam et al. (2026) studied this question.
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