Effects of Circular Business Transformation on the Employer Attractiveness of Manufacturing Companies
(A2025-126262)

AUTHORS

Jovinary Kajuna, Norwegian School of Economics; Abdallah Issahaka, Centre for Applied Research at Norwegian School of Economics (SNF-NHH); Mohammad Zarei, NLA University College; Magne Supphellen, Norwegian School of Economics

ABSTRACT

In this study we develop a model of how the level of circular transformation (LCT) in firms influences employer attractiveness. The model was tested on a sample of managers from 205 American manufacturing firms. We find that LCT has a strong and positive effect on employer effectiveness, and this effect is mediated through both organizational-level and employee-level variables. At the organizational level, the extent to which sustainability is integrated in the brand positioning mediates the effect of LCT on employer attractiveness. We find that this mediating effect is stronger for small firms than for large firms. At the employee level, LCT increases employee commitment, which in turn leads to higher levels of employer attractiveness. This positive effect of employee commitment on employer attractiveness is partly mediated by staff word of mouth. These findings represent novel insights into the mechanisms by which circular transformation affects employer attractiveness.