Network governance and circular economy linkage effectiveness: The mediating roles of adaptability and operational performance

Abstract

In the context of accelerating the transition toward a circular economy (CE), the development of effective linkages among actors within CE networks plays a crucial role in improving resource-use efficiency and promoting sustainable production (Finamore & Oltean-Dumbrava, 2024; Rosário et al., 2024). This study examines the effects of compatibility and network governance on CE linkage effectiveness, with a particular focus on the mediating roles of organizational adaptability and operational performance. The research data were collected through surveys of organizations participating in CE networks across several provinces in Vietnam. The quantitative analysis reveals that organizational adaptability serves as a significant mediating factor in the relationship between network governance and operational performance, whereas trust does not exhibit a statistically significant mediating effect. Moreover, operational performance is positively related to enhanced CE linkage effectiveness among network actors. The study clarifies the governance-adaptability-operational performance mechanism in CE networks and offers policy and managerial implications for emerging economies such as Vietnam.