Strategic entrepreneurship circular economy practices and sustainable work performance among SMEs through institutional pathways for decent work and green economic growth

Achieving Sustainable Development Goal 8 requires the simultaneous advancement of decent work conditions and sustainable economic growth, particularly within resource-constrained small and medium enterprises (SMEs). This study investigates how Strategic Entrepreneurship (SE) enables SMEs to adopt Circular Economy (CE) practices and examines whether these practices contribute to triple bottom line (TBL) sustainability performance. This study, the social dimension of TBL reflects decent work outcomes, while the economic and environmental dimensions represent green economic growth within SMEs. Grounded in the SE framework, Circular Economy paradigm, and institutional theory, the study tests a moderated mediation model using data from 385 SMEs in Tamil Nadu, India. SE is shown to be a strong driver of CE adoption, highlighting the role of innovation, opportunity-seeking, and strategic renewal in generating greener workflows and emerging green-job opportunities. However, CE adoption does not yet translate into significant improvements in economic, environmental, or social performance, indicating that the sustainability and decent-work benefits of CE practices may require longer time horizons, stronger institutional alignment, and expanded skill development. Institutional Support demonstrates a robust main effect on TBL outcomes but does not significantly moderate or enhance the SE–CE–TBL pathways. The findings contribute to current debates on how SMEs can integrate entrepreneurial orientation, green economic practices, and supportive institutional environments to build sustainable, skill-intensive, and inclusive work structures. Also offer practical guidance to SME development agencies, labour and skill ministries, and sustainability regulators by demonstrating how institutional support structures can enable entrepreneurial firms to adopt circular practices and progressively translate them into skill-intensive employment, greener production systems, and more inclusive forms of economic development. By situating firm-level sustainability transitions within broader institutional and societal contexts.