Eco-control systems and firm performance: Understanding the mediating role of circular economy practices and the moderating role of environmental uncertainty.

This paper takes a look at the impact of eco-control systems on the circular economy (CE) practices and economic and environmental performances of firms, taking in account the moderating role that environmental uncertainty can play in this regard. Based on data from a sample of 205 French manufacturing firms, and using hierarchical regressions analysis, the study reveals that eco-control systems improve CE practices as along with both ecological and economic performances. As such, this study provides novel insights challenging thus extant literature which argued that the influence of ecological control systems on economic performance may not be direct and may come about through specific organizational actions or initiatives. Research also reveals that the impact of eco-control systems as mediated by CE practices differs depending on the nature of the company's performance. More precisely, eco-control systems improve environmental performance through CE practices while no indirect effect was found with regard to economic performance. In doing so, this study provides novel insights to existing works by highlighting the positive role that CE plays in value creation of businesses. Moreover, environmental uncertainty was found to be a main contextual factor that positively moderates connection between ecological control systems and economic performance. As such, this study provides novel insights and broadens the literature in this area. This work generally offers an innovative view of the role that ecological control systems play in managing firms' CE practices to achieve better performance under environmental uncertainty conditions. [ABSTRACT FROM AUTHOR]