Catalysts of circular transformation: unveiling behavioural intention and absorptive capacity in European hotels

The EU has been taking various steps to encourage circular economy implementation. Hotels, like all other sector enterprises, are expected to adopt circular practices. However, they are facing difficulty in adopting circular practices while the academic discussion on how they can do so is still in its infancy. This study assesses whether the nexus of the behavioural intention of administrators and the absorptive capacity of hotels leads to circular practices adoption. To test the hypotheses drawn from the theories of planned behaviour and organisational learning, this study analyses a sample of 226 administrators from European hotels using partial least squares structural equation modelling. The analysis reveals that the attitude and perceived behavioural control of administrators predominantly shape their behavioural intention, which in turn along with the absorptive capacity influences circular practices adoption. This study thus concludes that if hotels strengthen their absorptive capacity, then they may succeed in adopting circular practices. To achieve this, hotels should prioritise sustainability-focused training and cultivate partnerships for practical knowledge exchange on circular practices. For broader adoption, practitioners and policymakers can accelerate progress by offering targeted incentives and creating sector-specific guidelines that make circular economy initiatives accessible and actionable for hotels of all sizes.