Toward circular economy of fashion

2019 ◽  
Vol 23 (3) ◽  
pp. 345-365 ◽  
Author(s):  
Kerli Kant Hvass ◽  
Esben Rahbek Gjerdrum Pedersen

Purpose The purpose of this paper is to examine the challenges and solutions emerging when fashion brands develop and test circular economy solutions within their existing business models. Design/methodology/approach The paper is based on a 34-month case study in a global fashion brand, which launched a new in-store product take-back initiative. Findings The results indicate that fashion brands need to cope with multiple challenges in the process of developing circular business models in the organization, including: diverging perspectives of value and unclear success criteria, poor alignment with existing strategy, limited internal skills and competences, and limited consumer interest. Research limitations/implications The results of this paper are grounded in a single case study and thus limitations associated with broad generalizations apply. In addition, the paper only investigated one aspect of circularity, namely, product take-back and did not investigate design for circularity, product reuse, recycle and other circularity related issues. Originality/value The findings derive from practical experiences of a fashion brand implementing an in-store product take-back system in the existing business model. The study reveals new insights into the actual process of making circular fashion operable.

2019 ◽  
Vol 23 (3) ◽  
pp. 308-326 ◽  
Author(s):  
Esben Rahbek Gjerdrum Pedersen ◽  
Rebecca Earley ◽  
Kirsti Reitan Andersen

Purpose The purpose of this paper is to discuss how organisational complexities influence the design of circular business models, which have recently been introduced as a new panacea for aligning the interests of business with the needs of the environment. Design/methodology/approach The Service Shirt, a new garment concept, is used as an illustrative case example for demonstrating some of the organisational complexities of making circular business models operable. The shirt was developed through a series of design workshops for the fashion brand Fashion Alpha. Findings The analysis highlights multiple challenges emerging when a fashion product with a significantly extended lifecycle passes through different users, organisations and business models. It is concluded that it is difficult to talk about a circular business model (singular) as circular economy solutions depend on the contributions of multiple stakeholders with business models. Practical implications The findings illustrate how fashion companies interested in the circular economy fundamentally have to rethink conventional approaches to value, organisational boundaries and temporality. Originality/value Drawing on a case example from the fashion industry, the paper demonstrates the organisational complexities linked to the design of new business models based on circular economy thinking, as these require the coordination of actions between autonomous actors driven by different logics regarding value creation, value delivery and value capture.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simone Pizzi ◽  
Rossella Leopizzi ◽  
Andrea Caputo

PurposeThis study aims to investigate the evolutionary pathways adopted by a digital platform to favor the development of an entrepreneurial ecosystem inspired by circular economy behaviors, becoming an enabler in the development of a coevolutionary relationship between entrepreneurial ecosystems and circular economy.Design/methodology/approachAn in-depth single-case study method has been applied, investigating the case of circularity.com, the first and only circular economy industrial symbiosis platform in Italy.FindingsThe paper shows how digital platforms can transition towards circular business models, particularly for small and medium enterprises (SMEs). Moreover, the findings show how sustainable platforms' need to revise their business models to effectively engage with stakeholders. The analysis also shows the central role covered by entrepreneurial ecosystems in the transition towards a more circular and sustainable business models.Originality/valueThis paper contributes to theoretical development by offering new and insightful explanations of firms' behavior and coevolution, moving beyond the classic interpretation of industry dynamics and analyzing a unique case study. This study has implications for both practice and research, as it offers a better and more holistic understanding of the enabling role of digital platforms for a circular economy.


2019 ◽  
Vol 28 (2) ◽  
pp. 201-220 ◽  
Author(s):  
Angelo Cavallo ◽  
Antonio Ghezzi ◽  
Bertha Viviana Ruales Guzmán

Purpose This paper aims to investigate how a firm may innovate its business model to internationalize. Design/methodology/approach Owing to its novelty and to the depth of the investigation required to grasp the mechanisms and logics of business model innovation aiming at internationalization, a single case study has been performed related to a company located in North-Western Colombia. Findings The study provides detailed empirical evidences over the mutual connection and complementarities among value mechanisms of business models. Moreover, this study suggests that BMI fosters internationalization to scale, which, in turn, will require additional changes to match new customer needs as they emerge. Also, the study shows an extension of the action–space of lean startup approaches, intended as scientific approaches to international entrepreneurship. Originality/value This study connects business model innovation and internationalization as few studies have done before.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jacqueline Zonichenn Reis ◽  
Rodrigo Franco Goncalves ◽  
Epaminondas de Souza Lage ◽  
Irenilza de Alencar Nääs

Purpose Considering the relevance of innovative business models in the digitally transformed market and the lack of clarity on the internet of services (IoS) contribution for a business model deployment in current literature, this study aims to fill this gap by evaluating a business model that converges to an IoS adoption in a direct sale of free-range eggs from farmers to consumers. Design/methodology/approach From the bibliographical research regarding the IoS and business model, the authors developed an IoS-based model framework. The framework has been evaluated in a real business scenario by using a single case study through an interview with the entrepreneur and documental analysis. Findings As the main result, a framework with the attributes can be considered a tool for an IoS-based business model deployment. The case study concluded that the business is aligned with the IoS adoption, and the framework presents adherence to it. Research limitations/implications The case study was limited to only one company owing to the IoS’s novelty and the lack of correlated business models. Although the case study limits to the agriculture field, the proposed framework may be broadly applied. Originality/value Considering that the lack of a comprehensive business model causes new businesses to face challenges, it is relevant bringing up the present case study of the IoS-based business model, which correlates these two subjects, still poorly explored in the scientific literature: IoS and business models.


2018 ◽  
Vol 20 (1) ◽  
pp. 99-120 ◽  
Author(s):  
Nabyla Daidj ◽  
Charles Egert

PurposeThe purpose of this research paper is to discuss the evolution in business models (BM) of one key player (Netflix) in the French online streaming video services market.Design/methodology/approachThe paper is based on a qualitative approach (Netflix case study based on secondary data) to reduce the gap between theory and business practice.FindingsThrough technological convergence, the movie and video industry has seen dramatic changes in the means of consumption, forcing the traditional media players to evolve and adapt their strategy and BM to face new entrants (mainly IT companies). Coopetitive practices have been developed in spite of a fierce competition in the French market with impact on BM. Netflix is representative of this evolution.Research limitations/implicationsThis qualitative research is based on a case study. The results of a single case study cannot be used to make generalizations. Certainly, this paper represents only a first step. Further research is required in this field.Originality/valueThe originality of this paper is to expand the understanding of BMs by including various strategic and marketing perspectives and analyze the impact of coopetitive practices on the BM of one key player: Netflix.


2019 ◽  
Vol 32 (1) ◽  
pp. 129-147 ◽  
Author(s):  
Marjan Miremadi ◽  
Kamyar Goudarzi

PurposeThis paper aims to focus on the role of hospital business models by examining the innovative business model of Moheb Hospitals, which have successfully achieved the goal of reducing costs and delivering high-quality health-care services in Iran by encouraging public–private partnership.Design/methodology/approachThis paper is a single case study.FindingsThe study results illustrate the hospital’s current business model and its underlying elements. After presenting the findings, this paper is concluded by presenting the standing issues that should also be addressed and how improvements and adjustments can be made.Originality/valueThis study offers new insight to identify and analyze the shortcomings of health-care sector in Iran and introduces new methods to efficiently use current competencies.


2015 ◽  
Vol 20 (6) ◽  
pp. 587-602 ◽  
Author(s):  
Peter Trkman ◽  
Marko Budler ◽  
Aleš Groznik

Purpose – This paper aims to extend the topics from a 2007 paper to stimulate debate on strategic issues vital for the long-term success of supply chains (SCs). The authors upgraded from SC process modelling towards SC business model management; from information to knowledge transfer and from the maturity of SC to dynamic capabilities. The paper attempts to identify and connect the elements of SC business model and the key issues for development of dynamic capabilities to enable future redesign of business models. Design/methodology/approach – The paper develops two frameworks showing the elements of an SC business model and the interconnection of those elements and dynamic capabilities. The use of these frameworks is demonstrated in a case study of Post of Slovenia. The case uses both primary and secondary data gathered from interviews, publicly accessible articles and internal reports. Findings – An SC should develop the elements of its business model in such a way that it will be able to continually change its existing or add a new business model from the AS-IS state to a currently unpredictable “TO-BE” state as a response to currently unknown changes in its business model. Research limitations/implications – The selection of the elements in the frameworks is partly arbitrary. A single case study was conducted. Practical implications – SCs should not simply focus on improving the maturity/efficiency of current processes but can use the findings to carefully design their current business model and develop dynamic capabilities for future changes. Originality/value – This paper summarises and extends the recent literature through the dynamic capabilities approach and business model management and proposes two frameworks and identifies topics relevant for future development of the SCM field.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cristina M. Ostermann ◽  
Leandro da Silva Nascimento ◽  
Fernanda Kalil Steinbruch ◽  
Daniela Callegaro-de-Menezes

PurposeThis study aims to identify the drivers for adopting the circular economy (CE) in a born-sustainable business of the fashion sector.Design/methodology/approachAn 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.FindingsFrom 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/implicationsDue 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/valueThis 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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lara Penco ◽  
Andrea Ciacci ◽  
Clara Benevolo ◽  
Teresina Torre

PurposeThe study analyses the role that open social innovation (OSI) perspective played for Fondazione Banco Alimentare Onlus (FBAO), a food bank in Italy, in responding to the COVID-19 crisis. It answers the following research question: how does a crisis, such as the COVID-19 pandemic, stimulate the adoption of OSI practices to revamp the activities of FBAO and facilitate appropriate solutions to carry out its social mission?Design/methodology/approachThis study employs a qualitative approach. It is based on a single case study.FindingsThe study shows how COVID-19 has stimulated the adoption of OSI practices to continue to meet the social mission, creating innovative projects or finding new ways to do the same things.Research limitations/implicationsThe study is based on a single case study.Practical implicationsThe paper contributes insights into the literature on OSI, examining how inbound and outbound OSI mechanisms can modify business models and increase the adaptation capacity of food banks and their effectiveness. In addition, it provides a rich context in which the social value drivers provided by OSI are studied.Originality/valueThis paper applies the OSI to a food bank to evaluate what this action mode produces for the food bank during a health crisis. Specifically, this is the first paper that studies the COVID-19 crisis response of a food bank from the OSI perspective, focusing on the inbound and outbound OSI processes that characterized the entire network of relationships.


2019 ◽  
Vol 30 (3) ◽  
pp. 561-589 ◽  
Author(s):  
Enes Ünal ◽  
Andrea Urbinati ◽  
Davide Chiaroni

Purpose The purpose of this paper is to investigate the managerial practices that companies can implement in order to design a circular economy business model and how companies can create and capture value from a circular economy business model. Design/methodology/approach The paper adopts a single case study methodology with semi-structured interviews and company, supplier, and manufacturing site visits, conducted in a small-to-medium-size Italian company operating in the office supply industry. Findings The theoretical setting maps a set of managerial practices for a circular economy business model and sets the research gaps and questions in a research framework designed along three main dimensions: value network, customer value proposition and interface, and managerial commitment. Then, through an empirical analysis, the findings reveal that the proposed dimensions are interdependent and reinforce each other. Moreover, the managerial commitment as moderating factor between the value network and the customer value proposition and interface dimensions is identified as essential for reaching the intended goals of circular economy business models. Research limitations/implications This study maximizes the depth of the phenomenon under investigation by leveraging a single case study methodology, which ideally helps in a theory-testing approach as in the present case. Future research opportunities could be found in qualitative and quantitative studies to increase the generalizability of the findings of this paper. Practical implications The paper presents a set of relevant managerial practices for circular economy business models that can be used by managers who have the will to embrace in practice circular economy principles to support the design, change, or upgrade of the business model of companies within which they operate. Originality/value An interdisciplinary approach that integrates the research streams of circular economy, social psychology, organizational behavior, and business model design has been pursued to test the theoretical setting and the research framework for circular economy business models in a real-world context.


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