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Article
Publication date: 8 June 2021

Phuc Hong Huynh

Digital innovation and circular business model innovation are two critical enablers of a circular economy. A wide variety of digital technologies such as blockchain, 3D printing…

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Abstract

Purpose

Digital innovation and circular business model innovation are two critical enablers of a circular economy. A wide variety of digital technologies such as blockchain, 3D printing, cyber-physical systems, or big data also diverges the applications of digital technologies in circular business models. Given heterogeneous attributes of circular business models and digital technologies, the selections of digital technologies and circular business models might be highly distinctive within and between sectorial contexts. This paper examines digital circular business models in the context of the fashion industry and its multiple actors. This industry as the world’s second polluting industry requires an urgent circular economy (CE) transition with less resource consumption, lower waste emissions and a more stable economy.

Design/methodology/approach

An inductive, exploratory multiple-case study method is employed to investigate the ten cases of different sized fashion companies (i.e. large, small medium-sized firm (SME) and startup firms). The comparison across cases is conducted to understand fashion firms' distinct behaviours in adopting various digital circular economy strategies.

Findings

The paper presents three archetypes of digital-based circular business models in the fashion industry: the blockchain-based supply chain model, the service-based model and the pull demand-driven model. Besides incremental innovations, the radical business model and digital innovations as presented in the pull demand-driven model may be crucial to the fashion circular economy transition. The pull demand–driven model may shift the economy from scales to scopes, change the whole process of how the fashion items are forecasted, produced, and used, and reform consumer behaviours. The paths of adopting digital fashion circular business models are also different among large, SMEs and startup fashion firms.

Practical implications

The study provides business managers with empirical insights on how circular business models (CBMs) should be chosen according to intrinsic business capacities, technological competences and CE strategies. The emerging trends of new fashion markets (e.g. rental, subscription) and consumers' sustainable awareness should be not be neglected. Moreover, besides adopting recycling and reuse strategies, large fashion incumbents consider collaborating with other technology suppliers and startup companies to incubate more radical innovations.

Social implications

Appropriate policies and regulations should be enacted to enable the digital CE transition. Market patterns and consumer acceptances are considered highly challenging to these digital fashion models. A balanced policy on both the demand and supply sides are suggested. The one-side policy may fail CBMs that entail an upside-down collaboration of both producers and consumers. Moreover, it is perhaps time to rethink how to reduce unnecessary new demand rather than repeatedly producing and recycling.

Originality/value

The pace of CE research is lagging far behind the accelerating environmental contamination by the fashion industry. The study aims to narrow the gap between theory and practice to harmonise fashion firms' orchestration and accelerate the transition of the fashion industry towards the CE. This study examines diverse types of digital technologies in different circular business models in a homogeneous context of the fashion industry with heterogeneous firm types.

Details

International Journal of Productivity and Performance Management, vol. 71 no. 3
Type: Research Article
ISSN: 1741-0401

Keywords

Open Access
Article
Publication date: 10 May 2018

Kaisa Vehmas, Anne Raudaskoski, Pirjo Heikkilä, Ali Harlin and Aino Mensonen

The purpose of this paper is to explore consumers’ views and expectations on circular clothing. This paper also clarifies how the remanufacturing process should be communicated…

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Abstract

Purpose

The purpose of this paper is to explore consumers’ views and expectations on circular clothing. This paper also clarifies how the remanufacturing process should be communicated and circular fashion marketed to consumers.

Design/methodology/approach

The research methodology consisted of consumer interviews, utilising an online innovation platform (Owela) to involve consumers and workshops with project partners and with external stakeholders.

Findings

Consumers’ interest towards recycling and sustainable solutions has increased. They appreciate the idea of recycling textile waste to produce new clothes; circular products should become “the new normal”. Consumers are asking for more visible and concrete information about circular clothing and how their behaviour has affected the environmental aspects of textile production. The communication should be timed correctly by using multiple communication channels and also paying attention to the shopping experience. In addition, digital services alongside circular clothing could create additional value for consumers.

Research limitations/implications

In this study, only consumers from Finland were involved. The results might be different in different parts of Europe and especially worldwide.

Originality/value

This study focusses on circular clothing – an area that has not been studied much before. Also, consumers involved in this study were of a different age compared to most of the previous studies, where the focus has been mainly on young college students.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 22 no. 3
Type: Research Article
ISSN: 1361-2026

Keywords

Open Access
Book part
Publication date: 2 October 2023

Sönnich Dahl Sönnichsen

This chapter highlights how implementing circular economy principles can help companies working with sustainability to move from a reductionist and waste management approach to…

Abstract

This chapter highlights how implementing circular economy principles can help companies working with sustainability to move from a reductionist and waste management approach to marketing competitive circular value propositions that intentionally design out waste (e.g. emissions and pollution) by rethinking, reinventing and redesigning the value chain. Schijvens, a Dutch family-owned corporate fashion textile company, acts as a case for exemplifying successful implementation of circular economy principles as a marketing strategy in a sector that struggles with finding solutions to the ethical challenges of producing and marketing textile fashion. The textile industry has, for many years, been accused of production that is based on environmentally harmful processes and conditions that are not socially fair. Circular economy principles provide a range of suggestions to address the ethical challenges occurring from covering the human needs of having clothes to wear. Yet, implementing circular economy principles is not a panacea. It is not only a question of delivering a technological quick fix but also a question of managing the new processes and human mindset guiding the actions in the value chain. This chapter, therefore, outlines reasons for a different perspective on the traditional linear value chain and related implications managers face when undertaking a journey from sustainability based on a reductionist approach to a closed-loop approach. It is argued that implementing circular economy principles by pro-actively managing the value chain processes based on eco-centric dynamic capabilities can provide even more radical changes than the incremental reductionist approach often associated with being a green sustainable company.

Details

Creating a Sustainable Competitive Position: Ethical Challenges for International Firms
Type: Book
ISBN: 978-1-80455-252-0

Keywords

Open Access
Article
Publication date: 17 June 2021

Cristina M. Ostermann, Leandro da Silva Nascimento, Fernanda Kalil Steinbruch and Daniela Callegaro-de-Menezes

This study aims to identify the drivers for adopting the circular economy (CE) in a born-sustainable business of the fashion sector.

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Abstract

Purpose

This study aims to identify the drivers for adopting the circular economy (CE) in a born-sustainable business of the fashion sector.

Design/methodology/approach

An exploratory case study was carried out with a unique and relevant case: the only Brazilian company implementing circularity practices defined through a sectoral commitment, the 2020 Circular Fashion System Commitment.

Findings

From an analysis of the literature, a theoretical scheme composed of internal and external drivers is proposed. In the case studied, there is a prevalence of internal drivers that led the company to implement the CE. Most of the internal drivers described by the literature were identified in this research, except for two: profitability and available technology. Regarding the external drivers, of the 12 listed, only laws and regulations were identified. Thus, the results suggest that internal drivers are more numerous and may be more prominent than external ones for CE adoption in the born-sustainable business.

Research limitations/implications

Due to its exploratory design and unique case study, the research does not allow generalizations, suggesting replication with a larger number of companies and carrying out quantitative research with born-sustainable companies and incumbent companies, for comparison. Considering that there is a difference between companies that decide for sustainable practices and companies that were already born sustainable, it can be questioned if the drivers for implementing CE for both companies are also different.

Originality/value

This study proposes a theoretical scheme that indicates the main internal and external drivers for companies' CE implementation. Developed from a literature review and applied in an empirical case, this scheme is comprehensive and can be adopted to analyze companies of different sizes and industries. Hence, this paper generates new perspectives for CE literature.

Details

Revista de Gestão, vol. 28 no. 3
Type: Research Article
ISSN: 1809-2276

Keywords

Content available
Book part
Publication date: 18 May 2023

Abstract

Details

Pioneering New Perspectives in the Fashion Industry: Disruption, Diversity and Sustainable Innovation
Type: Book
ISBN: 978-1-80382-345-4

Open Access
Article
Publication date: 19 February 2024

Olga Gurova

This paper aims to answer the questions of what clothing practices related to sustainable fashion can be observed in young consumers' daily lives in Finland’s capital region and…

Abstract

Purpose

This paper aims to answer the questions of what clothing practices related to sustainable fashion can be observed in young consumers' daily lives in Finland’s capital region and what prevents their further proliferation.

Design/methodology/approach

This is qualitative research that draws from 22 semi-structured interviews with high school students in the capital area of Finland. The data were analyzed with the use of thematic analysis, a flexible method of data analysis that allows for the extraction of categories from both theoretical concepts and data.

Findings

This paper contributes to studies of young people’s consumption with the practice theory approach, putting forward the category of following sustainable fashion as an integrative practice. The three-element model of the practice theory allows answering the question of challenges that prevent the practice from shaping. The paper further advances this approach by identifying a list of context-specific dispersed practices incorporated into sustainable fashion.

Practical implications

The study suggests practical ways of improving clothing consumption based on the practice theory approach and findings from empirical research. Sustainable practices require competences, knowledge and skills that the school, as an institution working closely with high school students, could help develop.

Originality/value

The study contributes to the current studies of sustainability and youth culture of consumption with a practice theory approach and findings, related to a particular context of a country from Northern Europe.

Details

Young Consumers, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1747-3616

Keywords

Content available
Book part
Publication date: 18 May 2023

Abstract

Details

Pioneering New Perspectives in the Fashion Industry: Disruption, Diversity and Sustainable Innovation
Type: Book
ISBN: 978-1-80382-345-4

Open Access
Article
Publication date: 1 August 2022

Asphat Muposhi and Tinashe Chuchu

This study applies the modified brand avoidance model to examine factors that influence sustainable fashion avoidance behaviour among millennial shoppers in South Africa.

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Abstract

Purpose

This study applies the modified brand avoidance model to examine factors that influence sustainable fashion avoidance behaviour among millennial shoppers in South Africa.

Design/methodology/approach

A positivistic approach and a web-based online survey were employed to collect cross-sectional data from 423 millennial fashion shoppers. Standard multiple regression analysis was used to test proposed hypotheses.

Findings

Unmet expectations, materialism and symbolic incongruence emerged as major predictors of millennials' intention to avoid sustainable fashion. Sustainable fashion avoidance intention was found to have a positive effect on sustainable fashion avoidance behaviour.

Research limitations/implications

This study relied on self-reported data collected from millennial shoppers. Future studies may improve the generalizability of this study's results by conducting a comparative study with other cohorts such as baby boomers and Generation X who espouse different shopping values. Future studies may benefit from the use of longitudinal data in order to understand how millennial shoppers relate to sustainable fashion as it evolves.

Practical implications

The results of this study suggest the importance of developing value propositions that align sustainable fashion with cultural, personality and symbolic cues valued by millennial shoppers. Consumer education on the benefits of sustainable fashion is recommended as a long-term behavioural change strategy.

Social implications

The purchase behaviour of sustainable fashion should be encouraged as it enhances environmental sustainability including safeguarding the livelihoods of future generations.

Originality/value

This study contributes to literature on sustainable fashion avoidance behaviour. This is one of the pioneering studies to empirically examine the influence of unmet expectations, symbolic incongruence and ideological incompatibility in the context of an emerging market, such as South Africa.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1361-2026

Keywords

Abstract

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 23 no. 3
Type: Research Article
ISSN: 1361-2026

Open Access
Article
Publication date: 14 February 2023

Federica Ciccullo, Margherita Pero and Andrea S. Patrucco

The theory of complex adaptive systems (CASs) represents an interesting perspective to study the characteristics of circular supply chains (CSCs). In this regard, the current…

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Abstract

Purpose

The theory of complex adaptive systems (CASs) represents an interesting perspective to study the characteristics of circular supply chains (CSCs). In this regard, the current literature lacks evidence regarding coordination and integration mechanisms, characteristics of the environment and emerging system properties of CSCs. This paper aims to fill this gap and focuses on how and why companies design (i.e. configure and coordinate) their CSCs and what value these design choices help to create across different industries.

Design/methodology/approach

The authors use a multiple case study approach and analyze data collected from a sample of five sustainable start-ups operating in the fashion and construction industries in Italy to better understand how these companies design (i.e. configure and coordinate) their CSCs.

Findings

Results reveal that in the two industries under investigation, the design of CSCs built around open and closed–loop logic is triggered by the intention to solve a negative sustainability impact. The sustainability impact determines whether the value is restored within the same supply chain, in another, or inside or outside the same industry. Interestingly, start-ups appear to coordinate other CSC actors with three leading roles: (1) orchestrator, (2) integrated orchestrator and (3) circular manufacturer. The coordination role of the start-ups differs in each supply chain configuration based on the level of vertical integration of manufacturing activities.

Originality/value

From a theoretical perspective, the authors' results expand previous supply chain management (SCM) literature by presenting an empirical analysis of the configuration and coordination of CSCs, and discussing the drivers for creating such circularity from a CAS perspective. From a managerial perspective, the authors offer a practical experience to entrepreneurs on how to transform circular and sustainable business model aspirations into CSC practices.

Details

The International Journal of Logistics Management, vol. 34 no. 3
Type: Research Article
ISSN: 0957-4093

Keywords

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