Assessment of the Relationship Between Circular Supply Chain Management Practices and Sustainable Performance: A Meta‐Analysis of Empirical Evidence

ABSTRACT Given the growing economic, social, and environmental challenges, sustainable performance (SUSP) offers firms a viable pathway to overcome them and gain long‐term, meaningful business value. Several mechanisms, including the circular supply chain management (CSCM), are proposed to firms to achieve SUSP. However, some empirical findings have challenged this, prompting scholarly debate about the actual direction and strength of the relationship between CSCM and SUSP, thereby leaving prospective firms in a state of strategic ambiguity. To clarify the relationship, 55 empirical studies comprising over 15,000 observations and 109 effect sizes are synthesized through a psychometric, mixed‐model random‐effects meta‐analysis. The results show a positive and significant relationship, with the effect strongest in economic performance, followed by environmental performance, and weakest in social performance. A significant effect is established in most CSCM practices with SUSP dimensions. Economy type, firm size, sector, and innovation are established as significant moderators of the relationship. Findings guide managers on the CSCM practices to prioritize and inform policymakers on the contextual conditions under which the CSCM‐SUSP relationship is strongest. It advances the supply chain management (SCM) theories by clarifying the contingent and multidimensional performance effects of CSCM and resolving inconsistencies in prior findings.