Circular Design Strategies Unleashed: Competitiveness and the Journey Towards Circular Manufacturing Businesses

ABSTRACT The transition to a circular economy (CE) remains hindered by the lack of practical strategies that simultaneously secure competitiveness and deliver sustainability outcomes for manufacturing organisations. While circular design is often cited as a cornerstone of CE, its concrete role in driving competitive advantage and organisational transformation remains underexplored. This research examines the crucial role of circular design strategies in enhancing competitiveness and facilitating the transition to a CE within manufacturing organisations. Drawing on 42 in‐depth, semi‐structured interviews across eight leading sustainability‐focused manufacturing enterprises, this study sheds light on the practical implications and theoretical underpinnings of circular design strategies. The findings emphasise the potential of circular design strategies, including reconditioning, modularity, adaptability, standardisation and commonality, to disrupt markets, drive continuous innovation, enhance risk management and prioritise customer‐centric approaches, ultimately enhancing business competitiveness. Simultaneously, these strategies contribute to the circular transition by promoting resource efficiency, cost savings, circular supply chain transformation and waste reduction. This research contributes to practice by highlighting the practical relevance of circular design strategies in achieving sustainability, resilience and competitiveness in the manufacturing sector. Moreover, it enriches the theoretical landscape by elucidating the intricate interplay between circular design strategies, circularity and competitive advantage, offering comprehensive insights into their mutual influence. Ultimately, this study highlights the transformative potential of circular design strategies in shaping sustainable business futures.