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This study serves a dual purpose. First, it aims to explore the phase-wise progression that small and medium-sized enterprises (SMEs) and startups must undertake to become successful ecosystem partners, supporting large industrial firms in their circular transition. Second, it seeks to examine how these small firms manage change and foster collaborative cultures through strategies enabled by positive organizational scholarship (POS) during their phased evolution.

This study provides empirical evidence through a multiple case study-based approach involving 12 born-circular SMEs/startups from 5 diverse Indian industrial sectors. Insights were gathered by conducting two rounds of semi-structured interviews with 24 participants and one validatory seminar with eight participants.

This research identified three distinct and complementary phases – compare, compete and collaborate – that SMEs/startups can undergo to emerge as successful ecosystem partners. Each phase encompasses specific business practices, including various circular activities. These activities serve as clear indicators of the smaller firms’ potential competence in aiding larger firms during their circular transitions.

This paper contributes to the theoretical understanding of the circular economy by outlining a trajectory for SMEs/startups to establish successful partnerships. Another contribution is the application of POS as a positive change management paradigm to facilitate circularity. Additionally, the study highlights the context of developing nations, which remain underexplored compared to their developed counterparts in circularity initiatives.

The purpose of this paper is to provide an organizing lens for viewing the distinct contributions to knowledge production from those research communities addressing the impact of competitive strategy on company performance in general, and the influence of cost leadership and differentiation strategy on organizational performance in detail.

The research methodology was based on the PRISMA review, and thematic analysis based on an iterative process of open coding was analyzed and then the sample was analyzed by illustrating the research title, objectives, method, data analysis, sample size, variables and country.

The main factor that influenced the competitive strategy is strategic growth; strategic growth has a significant influence on competitive strategy. Furthermore, competitive strategy will boost firm network, performance measurement and organization behavior. In the same way, the internal goal factor will enhance organizational effectiveness. Also, a differentiation strategy will support management practice factors, strategic positions, product price, product characteristics and company performance.

This study contributes to the literature by identifying a framework of competitive strategy factors, company performance factors, cost leadership strategy factors, differentiation strategy factors and competitive strategy with global market factors. This study provides a complete picture and description of the resulting body knowledge in competitive strategy and organizational performance.