Leadership Agility for Circular Economy Transformation in SMEs: Strategic Pathways toward Sustainable Partnership Ecosystems

Abstract

Purpose: This study aims to develop a conceptual framework explaining how leadership agility facilitates circular economy transformation through sustainable partnership ecosystems in small and medium-sized enterprises (SMEs)

Design/methodology/approach: This study employed a qualitative approach using a literature review method. Relevant theories and empirical findings were synthesized from reputable international journals indexed in Scopus and Web of Science, with emphasis on recent publications related to leadership agility, circular economy transformation, sustainable partnership ecosystems, and SMEs. The literature was analyzed through descriptive qualitative analysis and conceptual synthesis to identify the interrelationships among the key constructs

Findings: The synthesis indicates that leadership agility enhances organizational adaptability, innovation capability, and collaborative capability, enabling SMEs to respond effectively to dynamic business environments. Furthermore, sustainable partnership ecosystems strengthen circular economy transformation by fostering trust, long-term commitment, collaborative learning, and shared value creation among business partners. Based on these findings, this study proposes a conceptual framework integrating leadership agility, sustainable partnership ecosystems, and circular economy transformation

Practical implications: The proposed framework provides strategic insights for SME leaders to strengthen collaborative partnerships and accelerate the implementation of circular economy practices through agile leadership

Originality/value: This study offers a novel conceptual perspective by integrating leadership agility and sustainable partnership ecosystems as strategic pathways for circular economy transformation in SMEs

Paper type: Conceptual paper