The purpose of this paper is to examine the effect of recycling strategy on organizational performance by collecting and analysing data from the household appliance industry in Egypt. In addition, this paper also tests the effect of resource allocation as a moderator variable for the relations between recycling strategy and organizational performance. The proposed research model describes the impact of recycling strategy on organizational performance and the effect of resource allocation as a moderator variable for the relation between recycling strategy and organizational performance.  The proposed research model and hypotheses were tested using correlation analyses, regression analyses and structural equation modelling based on data collected from 89 companies in the Egyptian paper industry. According to the results of the study, recycling strategy are positively associated with organizational performance. Moreover, resource allocation moderates the relation between recycling strategy and organizational performance. The generalization of the study results may be limited by the size of the sample. This study provides a useful working model in the household appliance industry. The results suggest that using recycle strategy will contribute to improving organizational performance, and appropriate resource allocation will moderate the relation between recycle strategy and organizational performance.