Beyond Greenwashing: Impact of Circular Economy Practices on Green Collaborative Practices and Sustainable Supply Chain Integration Through Green Value Co‐Creation

ABSTRACT This study examines the influence of circular economy practices, as a manifestation of corporate social responsibility, on green value co‐creation and its subsequent effects on green collaborative practices and sustainable supply chain integration between providers and customers. Grounded in signaling theory, the proposed model also investigates the moderating role of greenwashing on these relationships. Using structural equation modelling on a sample of 221 supplier–customer dyads in Portugal, results demonstrate that circular economy initiatives significantly enhance green value co‐creation, which in turn fosters green collaborative practices and sustainable supply chain integration. The moderating effect of greenwashing negatively impacts the perceived authenticity of these initiatives, thereby weakening their effectiveness. This research advances theoretical understanding of the mechanisms driving sustainable interorganizational collaboration and provides managerial insights for enhancing green supply chain strategies in the context of increasing environmental scrutiny.