Managerial Perception of the Application of the Circular Economy in the Hotel Sector

Despite growing interest in the circular economy (CE) in the hotel sector and extensive research identifying the conditions associated with its implementation, evidence remains insufficient on the organisational processes through which CE implementation takes shape. This research gap is the focus of the present study, which, recognising managers as agents of organisational change, addresses the following research question: How do managerial interpretations shape CE implementation? The study adopted a qualitative research approach, using semi-structured interviews with 20 managers of independent hotels and hotels operating within domestic and international hotel chains in the Republic of Croatia. Data were analysed using reflexive thematic analysis. The findings show that CE implementation cannot be fully explained by the implementation conditions identified in the existing literature alone. Based on these findings, the Selective Integration Model of CE Implementation in the Hotel Sector is proposed to explain how managerial interpretations shape CE implementation. By shifting the focus from identifying the conditions to explaining the process through which CE takes shape in hotels, the study offers a new theoretical explanation of CE integration in the hotel sector. The study also indicates that advancing CE implementation requires managers to continually develop their understanding of CE as a strategic orientation, as managerial interpretations guide the selection and implementation of circular practices. Implications for the Central European audience: Because advancing the circular economy is one of the objectives of Central European cooperation, the study contributes to understanding how regional circular transition objectives translate into organisational-level implementation and business practice.