The Future Is Circular: Accelerating the Transition From Linear to Circular Models Through Board Dynamics, Green Innovation, and Regulatory Environment

ABSTRACT The transition from linear to circular economic models is a critical response to global environmental degradation and unsustainable resource consumption. The circular economy (CE) offers a viable pathway to sustainable development through waste reduction, resource efficiency, and closed‐loop systems. However, within the energy sectors of countries participating in the belt and road initiative, hereinafter BRI countries, particularly in Sub‐Saharan Africa, the adoption of circular economy practices (CEP) remains limited. This study investigates the role of board dynamics (BD) in facilitating CEP and examines how green innovation (GI) and the regulatory environment (RE), hereinafter treated as contextual enablers, moderate this relationship. Drawing on agency, stakeholder, and resource dependence theories, the study addresses three questions: How do board attributes influence CEP? To what extent do GI and RE enhance this effect? A novel CEP index based on the 4R framework (Reduce, Reuse, Recycle, Recover) was developed and applied to panel data from 372 energy firms in BRI countries between 2010 and 2022. Using advanced econometric techniques, including System GMM, the study finds that gender diversity, foreign board membership, independence, and ownership concentration positively influence CEP, while CEO duality has a negative effect. Both GI and RE significantly strengthen these relationships. The findings contribute to governance and sustainability scholarship by illustrating how internal governance and external conditions jointly influence circularity outcomes. The study concludes that corporate boards, hereinafter regarded as strategic agents, play a critical role in accelerating the CE transition in emerging economies.