Make the most of what you have! Exploring circularity practices adoption in olive milling through the norm activation model.

The transition toward a circular economy (CE) in agriculture relies not only on technological progress but also on the behavioural readiness of millers to embrace sustainable practices. This study employs the Norm Activation Model (NAM) to examine how psychological and structural factors shape CE practices adoption among olive oil mill business owners in Sicily. Drawing on survey data, we conducted a Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis using actual behaviour as dependent variable. The results indicate that Awareness of Consequences and Ascription of Responsibility significantly strengthen Personal Norms, emphasizing their key role in fostering moral engagement with environmental sustainability. Yet, Personal Norms alone do not directly lead to CE practices adoption, highlighting a persistent attitude-behaviour gap typical of traditional farming contexts. Notably, Awareness of Consequences exerts a direct effect on observed behaviour while Personal Norms do not, suggesting that NAM may require adaptation when applied to small, family-run agri-food firms in which the owner-manager translates the cognitive recognition of environmental impacts directly into firm-level decisions. Conversely, education, experience, enterprise size, and milling type are found to be significant drivers of CE participation, indicating that moral motivation must be complemented by suitable organizational and contextual support. The findings provide novel empirical evidence that the CE transition in agri-food systems results from the relation between individual moral activation and organizational capacity. Policy measures should therefore combine behavioural and structural approaches, through education, technical assistance, and targeted incentives, to encourage CE innovation and the possible valorization of olive oil by-products.