Aim:
This study addresses the transition to a circular economy (CE) in agri-food supply chains, focusing on how digitalization, institutional capacity, and collaboration shape CE practices. It highlights a research gap in existing literature, which often lacks multi-actor, multi-country perspectives. The paper introduces the EDDU-M model to analyze these dynamics in Türkiye and Italy – two countries with different digital and institutional maturity levels.

Material and methods:
A mixed-methods design was used, combining Structural Equation Modeling (SEM) for hypothesis testing with fuzzy-set Qualitative Comparative Analysis (fsQCA) and thematic analysis. Data were collected from 412 businesses across seven supply chain actors (e.g., producers, processors, exporters) through surveys and interviews. The study measured digitalization, CE practices, institutional capacity, and collaboration structures, with country context as a moderating variable.

Results:
Digitalization significantly boosts CE performance in both countries, but its effect varies across actors. In Türkiye, logistics and exporters benefit most, while in Italy, the impact is more evenly distributed. Collaboration and institutional capacity also strongly influence CE outcomes. fsQCA revealed that different combinations of digital tools and collaborative dynamics can lead to high CE performance, depending on the national and actor context.

Conclusions:
The EDDU-M model provides a comprehensive framework for understanding CE transitions in agri-food systems. It shows that digital tools alone are not sufficient – contextual factors like cooperation quality and institutional support are equally vital. These insights offer practical guidance for policymakers aiming to promote sustainable transformation across diverse agricultural ecosystems.