Closing the Loop in Supply Chains: Supplier Commitment and Green Motivation as Drivers of Circular Logistics Adoption via Identity Mechanisms

Background: Circular logistics translates circular economy principles into practical supply chain processes, but its adoption varies across firms because organizations differ in sustainability commitment, circular supply chain motivation, shared circular identity, and digital traceability capability. This study examines how supplier sustainability commitment and circular supply chain motivation influence circular logistics adoption through circular supply chain identity, while also testing the moderating role of digital traceability capability. Methods: Data were collected from 350 supply chain professionals in Saudi Arabia and analyzed using partial least squares structural equation modeling (PLS-SEM). Results: Supplier sustainability commitment and circular supply chain motivation positively influenced both circular logistics adoption and circular supply chain identity. Circular supply chain identity also positively affected circular logistics adoption and partially mediated the effects of both antecedents. Digital traceability capability acted as a selective moderator: it weakened the circular supply chain motivation–identity relationship, did not significantly moderate the supplier sustainability commitment–adoption relationship, but strengthened the circular supply chain identity–adoption relationship. It also moderated the indirect effect of circular supply chain motivation on circular logistics adoption through circular supply chain identity. Conclusions: Circular logistics adoption is driven not only by commitment and motivation, but also by shared circular identity and digitally enabled traceability.