The moderating effect of top management environmental awareness on the relationship between circular economy practices and circular economy performance: insights from the Iraqi oil and gas industry

Authors

  • Susan Sabah Abdulameer Business Administration Techniques Department, Management Technical College, Southern Technical University
  • Yousif Munadhil Ibrahim Department of Business Administration, Alfarqadein University College
  • Layla Laftah Ali Business Administration Techniques Department, Management Technical College, Southern Technical University
  • Alhasan Ali Abdulkareem Al-Attar Management Information Systems, College of Administration and Economics, University of Basrah
  • Norsiah Hami School of Technology Management and Logistics, College of Business, Universiti Utara Malaysia
  • Noorulsadiqin Azbiya Yaacob Yaacob School of Technology Management and Logistics, College of Business, Universiti Utara Malaysia

DOI:

https://doi.org/10.25299/ijbs.2025.23057

Keywords:

Circular Economy Practices, Circular Economy Performance, Environmental Awareness, Top Management, Oil and Gas Sector

Abstract

Purpose: This study investigates how circular economy practices (CEPs) influence circular economy performance (CEP), with a particular focus on the direct and moderating roles of Top Management Environmental Awareness (TMEA) in the Iraqi oil and gas industry. The aim is to understand the mechanisms that enhance sustainability performance through operational and cognitive factors.
Design/methodology/approach: A quantitative approach was employed using a cross-sectional survey of professionals in the Iraqi oil and gas sector. Data from 130 respondents was analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4 to examine relationships among variables and test moderation effects.
Findings: The findings reveal that CEPs significantly enhance CEP, and TMEA not only positively influences CEP but also strengthens the relationship between CEPs and CEP. These results underscore the joint importance of circular practices and strategic environmental leadership in advancing sustainability outcomes.
Limitations and Research Implications: The study is limited by its focus on a single sector and geographical context, potentially constraining generalizability. It encourages future research to explore longitudinal designs and examine other contextual moderators such as organizational culture or external stakeholder pressure.
Practical Implications: The results highlight the necessity for managers and policymakers to invest in leadership development programs that foster environmental awareness. Strengthening TMEA can amplify the performance gains derived from CE initiatives, particularly in resource-intensive industries.
Originality/value: This study contributes to the literature by integrating leadership cognition with circular economy implementation, providing novel insights into how managerial awareness enhances the impact of circular practices on performance.

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References

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Published

2025-07-31

Issue

Vol. 1 No. 1 (2025): July

Section

Articles