Circular economy implementation and sustainability performance of the textile industry in an emerging economy

PurposeThis study attempts to explore the association between circular economy implementation and sustainability performance for the textile industry in Vietnam. This study also investigated the influences of corporate green commitment on implementing circular economy practices as well as the moderating effect of corporate green efficacy on the relationship between corporate green commitment and circular economy implementation.Design/methodology/approachThe circular economy practices in the study were divided into three categories: internal environmental management, eco-design, and investment recovery. Sustainability performance consists of economic performance, environmental performance, and social performance. A questionnaire survey on Vietnam's textile companies was conducted in the study to test the proposed research framework.FindingsResearch findings reveal that corporate green commitment significantly influences the implementation of circular economy practices, and circular economy practices have significantly positive influences on sustainability performance. Corporate green efficacy significantly moderates the association between corporate green commitment and circular economy implementation.Originality/valueAs one of the first empirical studies focusing on the circular economy issues in Vietnam's textile industry, this study extended the understanding of the antecedents and consequences of implementing circular economy practices. The research results are theoretically and practically meaningful.