Human resource management theory and the circular economy: digital technologies and improvisation

Purpose This study explores the dynamic interplay between innovative digital technologies and improvisation in advancing Circular Economy (CE) practices through human resource management (HRM) strategies within SMEs. Design/methodology/approach Conducted within the turbulent environment of SMEs in a developing country, the study draws on insights from a multi-wave survey of 384 respondents, evaluating the interrelationships between HRM, improvisation, CE practices and digital technologies through hierarchical regression analysis. Findings We found that the integration of advanced digital technologies with well-structured HRM systems creates an environment that fosters improvisation, enabling SMEs to address the complexities of CE initiatives effectively. Originality/value By focusing on the mediating role of improvisation and the contextual influence of digital technologies, this research bridges HRM theory with practical CE advancements. The paper illuminates for both academics and practitioners how digital innovation and improvisation, when aligned with HRM practices, can help SMEs adapt to uncertainty and accelerate progress towards sustainable CE outcomes.