Bridging circular economy standards and continuous improvement: the role of institutional pressures and digital technologies in firms' circular transition

Purpose This study investigates whether and how the availability of circular economy (CE) standards supports firms' circular transition by fostering their orientation towards adopting CE practices and enhancing continuous improvement (CI). It further examines the moderating role of institutional pressures and the adoption of digital technologies in these relationships. Design/methodology/approach Drawing on Institutional Theory, the paper develops and tests a conceptual model using partial least squares structural equation modelling (PLS-SEM). Empirical data were collected through a survey administered to non-circular-born firms. Findings Findings show that CE standards availability positively affects both firms' orientation towards adopting CE practices and CI. Firms' orientation towards CE practices also positively influences CI. However, the indirect effect of CE standards availability on CI through firms' orientation towards CE practices is not significant, suggesting that, in non-circular-born firms, standards may operate primarily as direct cognitive and operational infrastructures. Institutional pressures positively moderate the relationship between CE standards availability and firms' orientation towards adopting CE practices. Digital technology adoption exerts a direct positive effect on CI and positively moderates the relationships between CE standards availability and CI, as well as between firms' orientation towards adopting CE practices and CI. Originality/value The paper advances the emerging literature on CE standardisation by showing that standards should be understood not only as codification and measurement devices, but also as organisational enablers of continuous improvement. In doing so, it integrates research on CE standards, CI, digital transformation and institutional pressures, offering new evidence on how circular transition unfolds in non-circular-born firms.