Blockchain Technology and the Circular Economy Transition: Associations With Company Performance

ABSTRACT The adoption of circular economy ( CE ) practices in the private sector has received increasing academic and managerial attention, although the implementation of such practices continues to face significant barriers. Among Industry 4.0 technologies, blockchain has been identified as a potential factor associated with the CE transition. This study examines managers' perceptions of blockchain's role in relation to CE principles and practices, as well as their connections to company performance. A covariance‐based structural equation model was applied to survey data obtained from 404 senior managers in small‐ and medium‐sized enterprises (SMEs) engaged in CE adoption. The findings suggest positive associations between blockchain perceptions and CE principles, which are, in turn, related to CE business processes. These processes are positively associated with internal transformation, resilience, and competitive capacity. This study contributes exploratory evidence to the emerging blockchain– CE literature, thereby identifying managerial perceptions as a foundation for future empirical validation and offering insights for academics, practitioners, and policy‐makers.