Integrating the circular economy into public organisations: The impact of digital transformations and circular insights on resource-conscious innovative behaviour

Despite growing attention to circular economy (CE) practices, there is limited research addressing how digitalisation enhances resource-conscious innovation behaviours among employees, a factor critical to CE adoption. Drawing on the literature on public administration and organisational knowledge creation, this study examines how digital transformation promotes circular insights development. We also explore the mediating role of circular insight development in the relationship between digital transformation and resource-conscious innovative behaviour and its influence on embedding CE practices in departmental strategies. The study also addresses bureaucratic constraints, proposing that employees' ability to navigate them moderates the relationship between resource-conscious innovative behaviour and CE integration. By answering key questions about the interplay of digitalisation, knowledge creation, innovation, and sustainability, this research contributes to the literature on public sector strategies for achieving environmental and operational efficiency. • Explores how digital transformation drives CE adoption in public services. • Introduces circular insight development as a key mechanism linking digitalization to resource-conscious innovative behaviour. • Demonstrates the mediating role of circular insights in embedding CE practices into departmental strategies. • Reveals how capacity to balance bureaucratic constraints moderates the impact of innovation behaviour on CE integration.