Buyer–supplier partnerships and circular economy performance in food supply chains: Serial mediation by commitment contract and innovation performance

Abstract

AbstractThe study investigates the impact of buyer–supplier partnerships on the performance of the circular economy (CE) in the food supply chain (FSC). Then, it also examines the effect of commitment contracts and innovation on the performance of the FSC. The research model is developed using behavioural economics concepts and collaborative theory. Furthermore, five research hypotheses are tested using samples from food manufacturers and other related supply chain partners. Covariance‐based structural equation modelling technique is used in this study, and necessary tests were done to ensure the high quality of findings. Buyer–supplier partnerships demonstrate both direct and indirect effects on the CE performance in FSC. The findings supported the serial mediation effect wherein buyer–supplier partnerships are found to exert their impact on the CE in FSC through commitment contracts and innovation performance in a successive way. The uniqueness of this study lies in the use of behavioural economics concepts to enhance CE performance. The study advances knowledge of commitment contracts by indicating whether and how it connects to CE performance results.