The Circular Economy (CE) - based on five principles (reduce, reuse, refurbish, repair, and recycle) - has received increased attention in both academia and practice in recent years. The transition to CE by public and private organizations can be seen as an entrepreneurial act encompassing their strategic policies, business models, structures, and processes. Little is known about the involvement of employees of organizations making this transition. Therefore, this study investigates the influence of organizations’ commitment to the five CE principles on their employees’ perceptions of the usefulness, ease of implementation, and acceptability of the principles. The method used is exploratory, a mixed-method approach combining PLS-SEM and fsQCA. This research contributes to the field by developing a unified theoretical perspective on the entrepreneurial context. It also highlights the impact of CE principles on organizations that are transitioning to more sustainable development. © 2023 Elsevier Inc.