Fostering circular economy capabilities through digital- and circular-oriented strategies for boosting triple bottom line performance

While the idea of twin transition, which combines digital transformation and circular economy and Net Zero transition has become a policy buzzword, it is unclear whether firms can combine these twin strategic orientations to improve the triple bottom line (TBL). From a synergistic strategic orientation perspective, this study investigates whether digital-oriented strategy (DOS) and circular-oriented strategy (COS) can complement each other to develop circular economy capabilities (CEC) for achieving TBL performance. Our analysis of survey data collected from Chinese manufacturers reveals that COS fully mediates the DOS–CEC relationship, and CEC partially mediates the COS–TBL relationship. Interestingly, the results indicate that DOS and COS influence CEC independently rather than interactively. Our empirical findings provide managers with timely practical insights into how to manage both the digital and circular economy transitions for boosting sustainability performance.