Navigating Acceptance of Paradoxical Tensions: A Self‐Efficacy Perspective on Paradox and Goal Setting Theories

ABSTRACT This study examines how individuals accept and navigate paradoxical tensions within a sustainability context, using a multiple case study of five Italian companies implementing circularity measurement tools. By exploring the interplay between self‐efficacy and acceptance of paradoxical tensions, drawing upon the Goal Setting and Paradox theories, we found that self‐efficacy and collective efficacy are significant drivers for accepting paradoxical tensions at the individual level. The study contributes to the literature on Corporate Sustainability by better understanding tension management through two key findings. Firstly, based on our results, we propose a model that describes the motivational roles of self‐efficacy and collective efficacy within “reactive‐leader centric” and “proactive‐team centric” organisations. Secondly, it reveals how training and information sharing reinforce self‐efficacy and collective efficacy. This study also offers practical managerial insights, suggesting strategies for enhancing self‐efficacy and collective efficacy in organisational settings, thereby facilitating the successful navigation of paradoxical tensions in pursuing circular economy goals.